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Delta-neutral

Stock market Delta PositionDemand

Delta-Neutral: This an "options/options" or "options/underlying instrument" position constructed so that it is relatively insensitive to the price movement of the underlying instruments.

 


A delta-neutral ratio spread in which more options are sold than bought. Also called Ratio Vertical Spread. A front spread will increase in value if volatility decreases.
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Put-Call Ratio ...

A delta-neutral spread composed of more long options than short options on the same underlying instrument. This position generally profits from a large movement in either direction in the underlying instrument.
BATS
BATS Options Exchange.

Neutral spread (delta-neutral spread). A compound option strategy that consists of a long option position and a short option position whose respective total delta positions are relatively equal.

Back Spread: A delta-neutral ratio spread in which more options are bought than sold. A back spread will be profitable if volatility increases. See Delta.

Back spreads are usually delta-neutral.
Balloon option: Most often found in foreign exchange markets, these options provide for greater leverage to the holder.

Neutral spread : See Neutral spread (delta-neutral spread). Neutral spread (delta-neutral spread) : A compound option strategy that con... NPR : ISO 4217 currency code, Currency used in Nepal, called Nepal Rupees...

Definition
Front spread
A delta-neutral ratio spread in which more options are sold than bought. Also called Ratio Vertical Spread. A front spread will increase in value if volatility decreases.
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Most commonly used to describe the purchase of one option and sale of another where both are of the same type and same expiration, but have different strike prices. Also used to describe a delta-neutral spread in which more options are sold than are ...

See also: Delta, Option, Volatility, Options, Futures

Stock market Delta PositionDemand

 
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