This is a revised version of an article that originally appeared in FutureSource’s Fast Break Newsletter on September 24, 2004. Have you purchased an option position in the past, and had the market move in your favor, only to ultimately lose money on the trade? Read this article and you might get some answers about… Read more.
Many traders are constantly looking for a way to manage risk. Employing a delta neutral trading strategy can help to manage exposure to the markets. This type of strategy will allow speculative traders to hedge their positions against adverse price movements.