This refers to an Option Portfolio which has various positions on (some
bullish and some
bearish) where the cumulative
Beta weighted
Delta is within a
range of -20 to +20. This number can vary by trader. A Delta Neutral portfolio reduces risk if you are directionally wrong about the market direction. Option traders who have a Delta Neutral Portfolio rely on
theta decay, and
implied volatility overstatement as their main drivers of long term edge
