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3 Results for Tag: theta

Vega Neutral

Vega Neutral What is 'Vega Neutral' A method of managing risk in options trading by establishing a hedge against the implied volatility of the underlying asset. A vega neutral option posit

Gamma Pricing Model

Gamma Pricing Model What is 'Gamma Pricing Model' An equation for determining the fair market value of a European-style option when the price movement on the underlying asset does not rese

Gamma Neutral

Gamma Neutral What is 'Gamma Neutral' A method of managing risk in options trading by establishing an asset portfolio whose delta rate of change is zero. A gamma-neutral portfolio hedges a