Talk:Delta neutral

message: I challenge this page to be larger. --User:General Eisenhower 03:05, March 25 2006
:If you want the page to grow, feel free to research the subject and add information yourself! Good luck. -- ConDemTalk 02:17, 27 March 2006 (UTC)
thread_title:  Large 

message: I have merged Delta hedging into this page as per the recent suggestion. I did it this way rather than into Delta hedging because I believe the term delta neutral is more general, and that delta hedging is the act of becoming delta neutral. Also, there was at least one link to a foreign language Wiki for Delta neutral and none for Delta hedging, hence it seemed easier this way. Ronnotel 01:55, 28 August 2007 (UTC)
thread_title:  Merge 

message: Static delta hedging is when you set delta to zero and delta does not vary when the price of the underlying changes... this article is simply wrong. 09:18, 4 December 2007 (CST) —Preceding unsigned comment added by 159.53.46.141 (talk • contribs) 
:WP:SOFIXIT ;) Ronnotel (talk) 17:18, 5 December 2007 (UTC)
thread_title:  Static delta hedging 

message: Does heteroscedasticity really have anything to do with delta hedging? I am not an expert in the field but it sounds counter intuitively  since heteroscedasticity refers to changes in volatility and not stock prices. 
:Do we have an expert in the field?  —Preceding unsigned comment added by 130.60.203.137 (talk) 09:31, 28 February 2008 (UTC)
thread_title:  Re: Mathematical interpretation 

message: Could use some information as to why you would want to be delta-neutral
:Good question and not really answered by the below link.
:For individual investors it's not relevant.
:For a hedge fund or IB that can take positions in the tens to hundreds of millions of dollars,
:it allows them to arbitrage a small discrepancy in pricing without taking the risk of the underlying security moving higher or lower.
:i.e.  They aren't making a directional bet, just an arbitrage. -- 67.150.104.16 (talk) 06:05, 9 August 2010 (UTC)
replies: text: There is a concrete example at http://www.quantprinciple.com/invest/index.php/docs/quant_strategies/delta_neutral_hedging_strategies/ Which shows how to assemble a portfolio that is Delta Neutral and how trading on the volatility makes money.  —Preceding unsigned comment added by U912boiler (talk • contribs) 18:24, 26 October 2009 (UTC)
thread_title:  Why be delta neutral? 

message: I just changed the notation a bit. It previously used Δ to describe the change in price of the underlying asset (Δ = s - s0, which I mistakenly wrote as s0 - s in one of my edit summaries). Well that is confusing because that notation is generally used to describe the partial derivative of the option wrt the stock price which is one of the Greeks. So instead I made ε = s - s0 the change in price in order to avoid that confusion. Just wanted to explain my actions here and was surprised that no one noticed that up to this point in this article.--Jersey Devil (talk) 06:43, 27 September 2009 (UTC)
replies: text: Note that the article uses s as the initial price which is different than the way I used s in my above comment to denote the price after some time.--Jersey Devil (talk) 06:50, 27 September 2009 (UTC)

text: This is really good thing to make delta hedged at Portfolio level  —Preceding unsigned comment added by 203.171.222.5 (talk) 15:48, 26 January 2010 (UTC)
thread_title:  Notation in equation in article