Delta measures the sensitivity of the value of an option to changes in the price of the underlying stock assuming all other variables remain unchanged.
Delta = change in value of option/change in stock
idreesz Wrote:
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> Delta measures the sensitivity of the value of an
> option to changes in the price of the underlying
> stock assuming all other variables remain
> unchanged.
>
> Delta = change in value of option/change in stock
thank you
He didn’t ask what Delta was… he asked for Delta Hedge which I’m assuming means Delta Neutral Portfolio?
# of options for delta neutral hedge = # of shares to hedge / delta of option
jdane416 Wrote:
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> He didn’t ask what Delta was… he asked for Delta
> Hedge which I’m assuming means Delta Neutral
> Portfolio?
>
> # of options for delta neutral hedge = # of shares
> to hedge / delta of option
well then, thank you too
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