Showing posts with the label gamma-neutral-option-strategy

THE OPTIONS COURSE- Advanced Delta Neutral Strategies

THE OPTIONS COURSE Advanced  Delta Neutral  Strategies Understanding the mechanics of a variety of delta neutral strategies is  vital to becoming a profitable nondirectional trader. Instead of being  overwhelmed by the complex nature of market dynamics, you can  implement a delta neutral strategy that takes advantage of market condi tions. Determining which strategy best fits the situation can easily be de duced through the use of risk profiles and relatively easy mathematical  calculations. Delta neutral trading is all about empowering traders to max imize their returns and minimize their losses. Although professional  traders have used delta neutral strategies on the major exchanges for  years, off-floor traders are rarely aware of these strategies.  We have already explored the basic delta neutral trading techniques.  It’s time to turn the spotlight on some advanced strategies: ratio spreads  and ratio backspreads. Ratio spreads are interesting strategies that