← Back to dashboard
Share
5100%
Cheap ways to get delta neutral on an options position without closing it?
Investor summaryNeutral
Asking for cheap strategies to hedge a long options position against short-term negative news without closing it.
Post body
What are some cheap ways to get delta neutral on an options position you don't want to close yet (or you can't close)?
Example:
- Long OTM Call with 40 DTE. Trader is bullish on the stock through expiration.
- Alert pops up with news of potential negative event to be reported in the next couple days (soemthing like a product recall or CEO leaving or lost major customer). Might be nothing non-event or but might be legit causing the stock price to fall fast.
- Trader would like to hedge their long call position against the negative headline risk through the weekend. Without closing the call and without shorting the underlying stock.
Initial thoughts would be something like turning the long call into a calendar spread or buying a short term put. All adjustments and hedges will have costs and risks (premiums, gamma risk, spreads).
Here to ask what would you look at to hedge a position like this?
How would you think about this situation?
And more generally how do you approach cheaply adjusting the exposure of an options trade? As finding short term cheap hedges could be needed whether short or long.
Discussion · top comments
No comment snapshot fetched for this post yet.

r/options