Option Greeks: Hedging Issues

Option Greeks: Hedging Issues

Intuition Publishing Pty Ltd
Updated Sep 24, 2020

The option greeks are essential for option traders in managing the risk of their current and potential exposures. In order to manage these exposures, traders hedge their positions, but hedging the greeks comes with its own issues. In our discussion of hedging the greek exposures, we explore rout-of-model hedging, balancing a hedge, and hedging options with options.