# Under what circumstances would one want to delta hedge a straddle

Under what circumstances would one want to delta hedge a straddle option? This link

explains:

 Both straddles and strangles can be used with delta hedging
when an investor expects high volatility around the strike price
(where gamma and returns from delta-hedging  will be greatest).


How am I gaining by hedging the delta, it is not clear from this explanation.

• Your question is not clear. Are you asking about a zero delta exposure at contract initiation or during the life time of the position? – Matt Feb 20 '15 at 3:40
• at contract initiation, it will already be close to delta neutral, right? call=+0.5, put = -0.5. I was asking why we need to keep delta hedging once the underlying start to move. – Victor123 Feb 20 '15 at 15:18
• A straddle at initiation does not have to be exactly delta neutral, not even an ATM or ATMF one. To make it delta neutral, it depends on the exact underlying we talk about and hence how you set the strike of the straddle. You can trade the gamma in the straddle and buy and sell the underlying during the life-time of the option. – Matt Feb 21 '15 at 10:15