Delta Neutral

What Does Delta Neutral Mean?
A portfolio consisting of positions with offsetting positive and negative deltas. The deltas balance out to bring the net change of the position to zero.

Investopedia explains Delta Neutral
As a result, you neutralize the response to market movements for a certain range.

Filed Under: Alternative Investments, Derivatives, Hedge Funds, Options

Related Terms

Delta
Delta Hedging
Gamma
Greeks
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