Delta Neutral Options Trading

Delta Neutral options trading still requires that you manage the time decay.
Longer term options will normally have lower deltas than shorter term options.
Delta is primarily affected by time left to expiration and price of the underlying stock.
With call options, delta increases as the underlying stock price increase. Call deltas are always positive. Note that when you sell a call, your position is delta negative.
With put options, delta decreases as the underlying asset price increases. Put deltas are always negative. Note that when you sell a put naked your position is delta positive.


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