OptionAutomator Options Trading Glossary:

Definition, Examples & Resources:Delta Neutral'

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What is Delta Neutral in Options Trading ?

Delta Neutral
An options trading strategy in which the effect of delta is neutralized by combining options with positive delta and options with negative delta to get a complex position that remains same in value provided there is no huge abrupt directional move. The position's delta can be also kept neutral with buying and selling a required number of underlying shares.

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