Delta hedging is a risk management strategy used to reduce or neutralize the price movements of an underlying asset in ...
Delta hedging differs significantly depending on whether you are managing call options or put options, as their deltas behave oppositely. Call options have positive deltas, meaning their value ...
Of course, many other spreads do this; but as you'll discover, by hedging the net gamma and net delta of our position, we can safely keep our position direction neutral. For our purposes ...
A protective put (a.k.a. "married put") is used to hedge against losses on an existing stock position. This strategy is typically employed when the investor remains bullish on the long-term ...
Plus, there are several put-heavy strikes below 580, too. This means delta-hedge selling is very much a heightened risk for bulls in the short term, especially if the SPY breaks below the 580 ...