Robert Nickelsberg / Getty Images A strap option is a market neutral ... on upward price movement and limited profit potential on downward price movement. The risk/loss is limited to the ...

Traders might use a gamma-neutral approach to maintain a consistent level of risk in their portfolio—no matter the price swings in the market. Theta measures the rate of an option's time decay ...

A risk-neutral investor sees both options equally because the expected ... finance and serves as a foundation for models used to price complex financial instruments. Risk neutrality contrasts ...