Trading Delta-Neutral...Again
Monday, September 18, 2006 at 12:02PM 
If I choose to purchase the GOOG Nov 420 Call, and Buy the GOOG Nov420 Put this creates a straddle. Notice the values of each options delta. The delta of the call is .51, and the delta of the put is -.51. This would mean the two values cancel each other out and equal zero. Any gain in the call would be equally offset by the loss in the put, and any gain in the put would be equally offset by loss in the call. If I were expecting a rise or fall in volatility, I might purchase or sell this straddle to profit from it.
My intention here was to show a specific example of how this works. You can also create this scenario by multi-leg option trades. Make sure you are compounding all your deltas until they equal or get close to zero. This will help you eliminate price as a factor and focus strictly on volatility.







Reader Comments (1)
Moncler Doudoune
Moncler Femme
Moncler Homme
Moncler Doudoune Femme
Moncler Doudoune Homme
Moncler piumini
Giubbotti Moncler
Moncler Piumini Donna
Moncler Piumini Uomo
Moncler Uomo
Moncler Donna
airジョーダン
ジョーダン シューズ
ジョーダン スニーカー
ナイキ ジョーダン
air max 2010
air max 2009
air max 90 sale
air max 95 cheap
cheap air max 2011
tiffany outlet
Tiffany Jewelry Outlet
Tiffany and Co Outlet
Tiffany & Co Outlet
chanel bikini
Ed hardy bikinis
jordan shoes for cheap
air jordan shoes sale
air jordan 11 for sale
air jordan 6 rings
Ralph Lauren Outlet
Ralph Lauren Shirts
Ralph Lauren T Shirt
Ralph Lauren Polos
TN Nike
Air Max TN
Aire Max TN
TN Requin
Air TN
chanel outlet
chanel bags for sale
gucci bags on sale
gucci bags for cheap
gucci bags outlet
Teva Sandals
Birkenstock Sandals
Tory Burch Sandals
beats by dre
beats by dr dre
monster headphones
Dr Dre headphones
Air Max Cheap
Air Max Shoes
Air Max
Air Max 90
Air Max 2011
Reebok Easy Tone
Reebok ZigTech
Reebok Pumps
Reebok Outlet
Reebok Zig
Welcome to our website order good quality and cheap price products