Options Jive - October 7, 2025 - The Zen of Zero: Three Ways to Get Neutral in Options Trading

Tom and Nick discuss option trading strategies, focusing on achieving directional neutrality through various methods. They explore three definitions of neutral: delta neutral, price neutral, and equidistant strangles, highlighting the nuances and assumptions behind each. They emphasize that markets are dynamic, making it difficult to maintain a perfect zero delta, and that traders should aim for a delta number that aligns with their risk tolerance. The conversation covers the benefits of delta-neutral strategies, such as stress reduction and diversification, and how to create a delta-neutral portfolio by combining bullish, bearish, and neutral positions. They also discuss rolling options as a defensive tactic to manage directional exposure and adjust deltas, reinforcing the importance of adapting to market movements and maintaining a contrarian approach.