how can options traders profit from a delta neutral position 
options traders can profit from delta neutral positions by selling options and collecting the time decay as time passes by eliminating exposure to small price fluctuations this strategy can be sharpened likewise traders may bet that the underlying asset s volatility will rise or fall in the future a delta neutral position allows such a trader to isolate the volatility figure from the market direction the bottom linedelta neutral occurs when a trader s net positions are hedged against changes in market price either up or down this is done by offsetting the deltas of one financial instrument with that of others this balance means that small movements in the underlying asset s price will have little to no impact on the overall value of the combined position e g stock plus options the idea is that the gain on one side of the position offsets the loss on the other however it s important to remember that delta is not static it changes as the market moves gamma and time passes therefore maintaining a delta neutral position often requires continual adjustments known as dynamic hedging 