Futures For You by Carley Garner
WHEN ARE DELTA NEUTRAL TRADES MOST APPROPRIATE?
Delta neutral trades are strategies involving long and short options, and possibly long and short futures, that combine to create a neutral trading position. Generally speaking, the goal of such a tactic is to benefit from the idea that options are typically an eroding asset. In premise, a delta neutral trader stands to make money over time in a relatively sideways market, assuming the IV of the options being used declines, as it generally does over time...