Tag: DeltaNeutral

Introduction: Delta neutral strategies are a sophisticated financial approach designed to create portfolios that are insensitive to small movements in the price of the underlying asset. This type of strategy is favored by traders and portfolio managers who wish to hedge risk while remaining receptive to profit opportunities. Central to achieving delta neutrality is the concept of strike price, which plays a pivotal role in the success and management of these strategies. The Essence of Delta Neutrality: Delta neutrality involves setting up a portfolio where the overall delta is zero—or very close...