Understanding How Futures Option Spreads React By Using Delta

There are a variety of ways to attack the beast which is trading Futures Option spreads. One method is trading spreads which you’re able to profit from time decay. How you proceed is to sell (put) options which you think will lose more time value than the options which you buy (call).

Another method is to buy and sell options which are based on their deltas. These trades at times are referred to as Delta Neutral Trades. These are particular option trades where the total delta of all of the …

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