Delta Neutral Trading Options Strategies

for the full article and other great options strategies.

Once you understand how delta neutral trading really works, you can use it to profit from options in a variety of ways. In this video we discuss some of them.

0:00 Defining the Options Delta
0:46 At the money options delta
1:09 How the options delta changes
1:27 Worked example - $100 strike price
2:37 Delta Neutral Trading in Action
Hedging a share portfolio
4:05 Scenario 1 - The Stock Price Increases
4;52 Scenario 2 - The Stock Price Falls
5:58 Delta neutral hedging a synthetic stock position
6:40 Delta Neutral Trading with Options
6:48 Straddles and Strangles
7:46 The Delta and Theta 'Option Greeks'
7:57 Gamma Scalping

[elfpuncher]

How would a synthetic position be "putting your funds to better use elsewhere?" You have to put up the cash to sell a put, unless you're doing it on margin. Then you have a whole different calculation to worry about if you're using margin for years

[santoshdeb]

Please make a more video in this subject

[maverick]

So delt neutral strategy depends on how much price is expected to move up or down. Is std dev used to calculate dthe delta required to neutralise thru options?

[abhi-shake]

wont the delta for 200 shares b 200 as delta for 1 stock is 1.?

[iDX]

Can't ignore time decay and changes in volatility.

[santhoshgbhat]

Whether the delta of 112 is -0.42 or -0.16?

[Frank-ktvz]

just sell the options and youll have a lot better results, but open yourself to unlimited losses