What is Delta neutral?Delta Neutral
A portfolio whose total Delta is 0, so small moves in the underlying barely change its value.
Learn “Delta neutral” in an animated lesson
- Hedging StrategiesDelta Hedging and Dynamic Rebalancing
After selling an option, use the stock to offset its price risk. But Delta changes with the stock price, so the hedge has to keep adjusting.
- Advanced Option StrategiesDelta and Gamma: An Option's Speed and Acceleration
For every $1 the stock moves, how much does the option move? That "speed" is Delta. The speed itself changes too, and how fast it changes is Gamma.
Related terms
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