How Can a Trader Achieve a “Delta-Neutral” Portfolio?

A Delta-neutral portfolio is one whose overall value is theoretically insensitive to small changes in the underlying asset's price. A trader achieves this by taking an opposite position in the underlying asset or other derivatives to perfectly offset the Delta exposure of their primary position.

For example, if an option position has a Delta of +50, the trader would short 50 units of the underlying asset.