Delta Neutral Option Strategies

This is a list of delta neutral option strategies:

Delta neutral means that total delta of the combined position is approximately zero.

Delta is one of option Greeks and measures how the value of an option (or combination of options) changes when underlying price moves. Positive delta means the option strategy profits when underlying price rises (and loses when underlying price falls), while negative delta means the opposite.

Delta neutrality means that the position’s value will not change much as underlying price moves, but it may change with other factors, such as volatility or passing time. Furthermore, delta itself can change as different factors change. As a result, even a position which has been set up as delta neutral can become more sensitive to underlying price later.

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