how delta hedging by selling the underlying asset is correct ? Please explain
aanchal55Advanced
Option strategies
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Put IV too high…Call IV too low.
To take advantage, ideally, Sell the Put and Buy the Call and wait for mean reversion. So, essentially, you did C+P- which is known as Long Risk Reversal Strategy. Strategy is equivalent to F+. To delta hedge, you need to Sell underlying shares to offset the Long Position.