Term of the Day: Delta-Gamma Hedging

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	INVESTOPEDIA Term Of The Day June 23, 2015 Delta-Gamma Hedging An options hedging strategy that combines a delta hedge and a gamma hedge. A delta-gamma hedge is designed to reduce or eliminate the risk created by changes in the underlying asset's price, as well as variances in how much the price changes. Investopedia Explains: In options, delta refers to a change in the price of an underlying asset, while gamma refers to the rate of change of delta. They are used to gauge movement... Read More Articles Related to "Delta-Gamma Hedging" Three Ways to Profit Using Call Options Call options and put options are the two primary type of option strategies. Below is a brief overview of how to provide from using... Read More An Introduction To Gamma-Delta Neutral Option Spreads Have you ever found strategies that make full use of the decay of an option's theta that are attractive... Read More Offset Risk With Options, Futures And Hedge Funds All portfolios contain risk. Risk can benefit our portfolios greatly, and just as quickly it can be responsible for... Read More Recently Added Definitions Poison Put A takeover defense strategy in which the target company issues a bond that investors can redeem before... Read More Boundary Conditions The maximum and minimum values used to indicate where the price of an option must lie. Boundary conditions are used to estimate... Read More Related Definitions Gamma Hedging Gamma Pricing Model Gamma Hedge Call Option Past Terms of the Day Modified Internal Rate Of Return - MIRR Equity Market Ordinary Shares Glide Path Exchange-Traded Mutual Funds (ETMF) You are currently subscribed as: mondemand.forex@blogger.com Unsubscribe | Unsubscribe From All | Manage Profile Investopedia US, A Division of IAC. Copyright © 2015, Investopedia, LLC. All Rights Reserved Follow Us: