if reliance CE option has as delta value of 0.5(considering ATM) and i am going to buy 2options to make it delta equal to 1, then how how many shares should  i sell in underlying asset to make delta neutral. Is it 1 share or 500 share as lot size of one option is 250

To achieve a delta-neutral position, the goal is to balance the delta of your options with the delta of the underlying asset.

Given:
- Delta of one call option (CE) = 0.5
- Number of options bought = 2
- Lot size per option = 250 shares

### Step 1: Calculate the total delta of your options position.
The delta for one option is 0.5. Since you are buying 2 options:
\[ \text{Total Delta} = 0.5 \times 2 = 1.0 \]

### Step 2: Determine the equivalent number of shares for delta-neutrality.
Each option controls 250 shares. To neutralize the delta:
- The total delta from your options is 1.0 (as calculated).
- To offset this, you need to short an equivalent delta of the underlying asset.

For every option, the delta of 1 means you control 250 shares.

Since your total delta is 1.0, and each option controls 250 shares, you would need to sell:
\[ \text{Shares to sell} = 1.0 \times 250 = 250 \text{ shares} \]

### Final Answer:
You need to sell **250 shares** of the underlying asset to make your position delta-neutral.

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Would you like more details or have any questions? Here are 5 related questions to explore further:

1. What happens to the delta as the option moves deeper in-the-money or out-of-the-money?
2. How would changes in volatility affect the delta of your option position?
3. What is the impact of gamma on a delta-neutral strategy?
4. How does time decay (theta) interact with delta-neutral positions?
5. How would a change in the underlying asset's price impact your delta-neutral position?

**Tip:** Always monitor your delta-neutral position, as delta changes with the underlying price, leading to the need for adjustments.

Learn how to achieve a delta-neutral position in options trading by balancing the delta of options with the underlying asset. Example calculation provided for understanding. Suitable for advanced learners and traders.

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