how does delta hedging work 
delta hedging is a trading strategy that involves options traders use it to hedge the directional risk associated with changes in the price of the underlying asset by using options this is usually done by buying or selling options and offsetting the risk by buying or selling an equal amount of stock or etf shares the aim is to reach a delta neutral state without a directional bias on the hedge can you use delta to determine how to hedge options yes you can use delta to hedge options in order to do this you must figure out whether you should buy or sell the underlying asset you can determine the quantity of the delta hedge by multiplying the total value of the delta by the number of options contracts involved take this figure and multiply that by 100 to get the final result 