The process whereby the grantor of an option decides to buy or sell more or less of an underlying futures contract in order to protect against being declared upon by the options holder. If delta hedgi [..]

A method used by option writers to hedge risk by purchasing or selling the underlying instrument in the spot market in proportion to the delta of their option position. It is an attempt, in effect, to adopt a neutral market position.

Definition An options strategy designed reduce the risk associated with price movements in the underlying security, achieved through offsetting long and short positions.