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Quotes of the day:
Doctors pour drugs of which they know little, to cure diseases of which they know less, into patients of whom they know nothing.
Delta hedging is an options trading strategy that aims to reduce, or hedge, the directional risk associated with price movements in the underlying asset. The approach uses options to offset the risk to either a single other option holding or an entire portfolio of holdings. The investor tries to reach a delta neutral state and not have a directional bias on the hedge.
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