delta neutral hedging

[sumitalwar]

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.

hello ,

please let me know about books to read on this topic and share your knowledge
please reply to the same

thnx


sumit

 

[DanPickUp]

hello ,

please let me know about books to read on this topic and share your knowledge
please reply to the same

thnx


sumit

There is a PDF about Delta neutral trading:

http://www.traderji.com/options/66266-option-trading-danpickup-5.html#post647575

 

[veeemkay]

hello ,

please let me know about books to read on this topic and share your knowledge
please reply to the same

thnx


sumit

If you have readily available internet access. Check out CBOE website webinars for income strategies. These are delta neutral theta positive strategies.

Delta neutral can also be theta negative i.e. gamma scalping strategy.

If all these are too much for you then please search the net for options greeks and learn about them. your questions after that would be more specific.

All the best.

 

[arm239]

Dear Myamit
First of all, you need to have a small prgram to calculate the delta of the options. For example, at the money call has delta 0.5, very deep in the money call delta 1. Remember underlying or future always has delta 1.
If you want to sell two at the money calls, total delta =-2*0.5=-1. In order to hedge this position, you buy one future. The portfolio delta = -2*0.5+1=0, => fully hedge at this moment.
Hope this can help you.

markmark

Hi
Can you also tell us that How and when to exit the trade.

 

[itsmesenju]

I am looking for option greeks (delta,theta) for nse options stocks (NIFTY50 STOCKS) ... Anybody can tell me is there any source , I can access the live option greeks for the nse market... I am not talking about the option calculator which we need to enter data and get the greeks... It should be live and change according to the pricing automatically... Any platform in India providing such data? Any brokers? Any wesites?