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2. Delta neutral - Wikipedia

   en.wikipedia.org/wiki/Delta_neutral

   A related term, delta hedging, is the process of setting or keeping a portfolio as close to delta-neutral as possible. In practice, maintaining a zero delta is very complex because there are risks associated with re-hedging on large movements in the underlying stock's price, and research indicates portfolios tend to have lower cash flows if re ...

3. Delta Neutral Investing: What You Need to Know - AOL

   www.aol.com/news/delta-neutral-investing-know...

   In options trading, “delta” represents volatility. It is one of a set of variables, collectively known as “the Greeks, that traders use to assess the risk of a derivative.

4. Box spread - Wikipedia

   en.wikipedia.org/wiki/Box_spread

   Profit diagram of a box spread. It is a combination of positions with a riskless payoff. In options trading, a box spread is a combination of positions that has a certain (i.e., riskless) payoff, considered to be simply "delta neutral interest rate position".

5. Volatility arbitrage - Wikipedia

   en.wikipedia.org/wiki/Volatility_arbitrage

   To an option trader engaging in volatility arbitrage, an option contract is a way to speculate in the volatility of the underlying rather than a directional bet on the underlying's price. If a trader buys options as part of a delta-neutral portfolio, he is said to be long volatility. If he sells options, he is said to be short volatility. So ...

6. Ladder (option combination) - Wikipedia

   en.wikipedia.org/wiki/Ladder_(option_combination)

   Often, the strike prices are chosen to make the ladder delta neutral. [1] All three options must have the same expiry date. [1] The term ladder is also used for an unrelated type of exotic option, [1] and the term Christmas tree is also used for an unrelated option combination similar to a butterfly. [5]

7. Moneyness - Wikipedia

   en.wikipedia.org/wiki/Moneyness

   N(d −) is the (Future Value) price of a binary call option, or the risk-neutral likelihood that the option will expire ITM, with numéraire cash (the risk-free asset); N(m) is the percentage corresponding to standardized moneyness; N(d +) is the Delta, or the risk-neutral likelihood that the option will expire ITM, with numéraire asset.