Uncovered Options Trading System

Options Autotrading
2017-2020 - 97 winners and only 4 losers

Options Glossary - Most Used Terms


Hedge Ratio

The mathematical quantity that is equal to the delta of an option. It is useful in that a theoretically neutral hedge can be established by taking offsetting positions in the underlying stock and its call options. 

See Also:

Hedge: A conservative strategy used to limit investment loss by effecting a transaction which offsets an existing position. Hedging is taking a position through options or futures opposite to the current position they hold in the market.

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