Both primarily consist of intrinsic value. To the Top Delta Neutral. A position arranged by selecting a calculated ratio of short and long positions that balance out to an overall position delta of zero. To the Top Delta . The rate of option price change relative to one unit change of the price of underlying stock or index.
Call options have positive deltas, while put options have negative deltas.
To the Top Delta-Hedged. An options strategy protecting an option against price changes in the option's stock by balancing the overall position delta to zero. To the Top Diagonal Spread . A spread in which the purchased options have a longer maturity than do the written options as well as having different strikes. Typical examples of diagonal spreads are diagonal bull spreads , diagonal bear spread s, and diagonal butterfly spreads.