Delta Neutral

Delta neutral refers to a trading approach/strategy wherein the delta exposure (directional bias) of an options position is reduced through an offsetting position in the underlying security. A delta neutral trading philosophy seeks to isolate the theoretical edge from volatility (i.e. mean reversion), while minimizing the directional bias of the portfolio.Click here to learn more.

This is a definition, not a recommendation. Options carry risk and can expire worthless. See how the desk actually trades at TrueTrader.