Options Portfolio Hedging: Hedging the Initial Exposure
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Options Portfolio Hedging: Hedging the Initial Exposure

Updated Jun 15, 2024

What you'll learn

  • We examine the shortcomings of many theoretical option formulas when applied to the real world, discuss dynamic hedging and how the changing delta of an option affects a hedge, and finally evaluate the risks that face an options trader when hedging the in
Course Description

Before attempting to hedge an options portfolio, a few issues must be considered. We examine the shortcomings of many theoretical option formulas when applied to the real world, discuss dynamic hedging and how the changing delta of an option affects a hedge, and finally evaluate the risks that face an options trader when hedging the initial exposure.