Option DELTA HEDGING Explained With Demonstration | LIVE OPTIONS TRADING

The most difficult aspect of options trading is managing losing positions...and there is no single correct way to do it either! One such method, however, is called delta hedging. So in this next episode of my live options trading series, I will walk you through a realtime demonstration of delta hedging a short strangle trade on SPY to slow down the trade's losses. We will also discuss other important concepts such as the option greeks (specifically Delta!) and how to roll short options to further expiration cycles!

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Chapters:
0:00 Introduction
2:13 Brief Overview Of My SPY Strangle
3:43 What Is Delta Hedging?
6:28 How To Implement Delta Hedging
9:34 Next Steps With A Hedged But Losing Strangle
10:56 Get 10 FREE Stocks With Moomoo
11:57 Wrapping Up

#bearmarket #optionselling #thinkorswim

[scottreesetradinginvesting]

You can also delta hedge with stock, which is technically what I do with my custom option selling strategy! However, I do "over-hedge" because I always buy or short 100 shares of stock for each contract that goes in the money. And options that have just gone in the money will usually only have a delta of around 50.

🔥 START YOUR FREE 7 DAY TRIAL WITH MY DISCORD HERE 🔥



🔥 GET UP TO 10 FREE STOCKS WITH MOOMOO 🔥
*** Use my link below to open a brokerage account and make an initial deposit to claim your rewards! ***

Open a Moomoo brokerage account = 1 free stock
Deposit $1 into your account = 5 extra free stocks (6 total)
Deposit $100 into your account = 1 more free stock (7 total)
Deposit $2, 000 into your account = 3 more free stocks (10 total)

[mattayele]

hey scott, since you hedged it, as the price of spy drops by$! shouldn't you call put option be gaining $70 and your call option loses $10 ?

[treborv]

Outstanding channel. Thanks for the clear and concise breakdown of the trades. I have a few broken options that need some repairing, and you offered a great strategy.