Futures Measures

When Should You Be "Delta Neutral?"

Futures Measures

Options involve risk and are not suitable for all investors. Please read Characteristics and Risks of Standardized Options before deciding to invest in options.

Just like with equity options, delta neutral positions in futures options eliminate the directional element from the strategy. However, it doesn't necessarily mean it will stay that way. On today's segment, Pete & Katie define delta neutrality and how our directional risk changes with movement in the underlying. Then, the duo discusses the role of time and volatility in delta neutral positions and how traders can use defensive mechanics to get their delta close to zero again if their position is tested.

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