how does delta hedging work 
delta hedging minimizes the directional risk associated with changes in the price of the underlying asset by using offsetting positions in options contracts this is usually done by buying or selling options with an equal but opposite exposure to the underlying asset by doing so gains losses in the underlying asset will be offset by equal losses gains in the options position can you use either calls or puts to be delta neutral yes if you own shares of stock you can buy puts or sell calls you can also create delta neutral positions from options alone such as being long an at the money straddle where you would buy one 0 50 delta call and one 0 50 delta put 