Delta Neutral Option Strategy - Short Straddle with Delta Hedging
Delta neutral option strategies are essentially volatility trades.
In a short volatility example, traders want to maximize their time decay whilst simultaneously delta hedging to keep their directional exposure in check.
By doing this, theta and vega become the big drivers in the position rather than delta.
In this example, I'll look at a short straddle trade on PM with weekly delta hedging. Hope you enjoy the video.
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