#Word of the Day with @investnirvana
Every option portfolio (whether it consists of a single option or several options) has 3 metrics at any given time:
Delta - sensitivity to changes in the price of the underlying asset
Vega - sensitivity to volatility.
Theta - dependence on the time course
Delta hedging consists in the fact that we remove the price of the asset (delta) from the set. Our portfolio becomes "delta-neutral"
