Do you know what the exact meaning of delta neutral. Yes delta=0. The example I showed above was to tell people how delta neutral can be done. To do delta neutral is to avoild the portfolio losing money in a small market move, exactly as you said, no lost no gain in direction. To make the above strategy, is to gain money from theta for overnight or expecting the implied volatility drops to gain money from vega. Please remember money can be made from options not only from direction.
I can give information up to this point as I have been told there is a limit of information which is free in india. However, I am happy to share my knowledge with you guys if you are polite.
I can give information up to this point as I have been told there is a limit of information which is free in india. However, I am happy to share my knowledge with you guys if you are polite.
please let me know about books to read on this topic and share your knowledge
please reply to the same
thnx
sumit