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What Does It Mean for a Portfolio to Be ‘Delta-Neutral’?

The sum of the Deltas of all positions is zero, making the portfolio theoretically insensitive to small directional price changes.
Greeks.Live14.11.25

What Does It Mean for a Portfolio to Be ‘Delta-Neutral’?

A portfolio is 'Delta-neutral' when its overall Delta (the sum of the Deltas of all its positions) is zero. This means the portfolio's value is theoretically insensitive to small changes in the price of the underlying asset.

Market makers aim for Delta-neutrality to hedge against directional price risk.

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