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Suppose that yesterday I shorted some call and put option contracts of an underlying and I had a neutral delta. This morning, I have a positive delta, and I want to keep my delta neutral. What do I need to do and why do I need to make this action? Should I buy or sell its underlying future contract?

Below is what I have this morning:

underlying Delta Gamma Vega Theta Rho
A 146718 -1796 -112258 1627 90326
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  • $\begingroup$ Is my question too trivial? Why does it not receive any comment and answer? $\endgroup$
    – user398843
    Feb 20 at 2:40
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    $\begingroup$ Yes, it is rather trivial. You are long delta and you wish to be flat. So you need to sell some delta $\endgroup$
    – dm63
    Feb 20 at 5:11
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    $\begingroup$ "Need more delta" => Buy the underlying, "Need less delta" => Sell the underlying $\endgroup$
    – nbbo2
    Feb 20 at 8:06

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Welcome, your delta is positive, you need to sell the underlier.

If you want to avoid having to delta hedge every day, then you might want to first neutralize second degree greeks like gamma using other derivatives, then delta hedge using the underlier.

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