Something beginner options traders always forget:
Hedging.
Without an effective hedging strategy, traders can face significant losses if the market moves against them.
Unfortunately, most people overcomplicate the process.
Delta hedging allows traders to offset price movements by adjusting positions in the underlying stock.
Most of my experience as a quant dealt with helping traders hedge their options positions. One the most common and effective methods we used was delta hedging.
By watching this video, you’ll be able to use Python to build a simple delta hedge.
Let’s go!
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Grab the code here:
https://www.pyquantnews.com/the-pyquant-newsletter/establish-simple-delta-hedge-actually-works-python
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