Neutral spread

delta neutral spread investment & finance definition
A spread where the total delta position on the long side and on the short side add up to approximately zero, thereby making the commodity risk neutral.

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.

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.

Delta-neutral spread: A spread in which the total delta position on the long side and the total delta position on the short side add up to approximately zero.

neutral spread Any profit-maximizing spread designed to create a change of zero, meaning that... New Car Registrations - Euro-zone Tracks the number of cars registered for the first time in the Euro Zone. Consumption...

Ratio Backspread: A delta neutral spread where more contracts are bought than sold in a ratio of .67 or less.
Ratio Spread: A delta neutral spread where the number of long contract and short contracts do not equal.

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: Spread, Long, Neutral, Position, Short