I'm reading Natenberg's Option Volatility & Pricing and have a quick question about becoming delta neutral. Don't know how many of you guys read the book, but in it he says the underlying asset will always have a delta of 100 (long position) or -100 (short position). So to become delta neutral, he says you can just add up the deltas so that it equals zero. So for example, if a call option has a delta of 50, you can buy two call options and then short the underlying asset to get: 2(50) + -100 = 0. This makes you delta neutral. My question is, don't equity options reflect 100 shares of the underlying asset? So don't you need to short 100 shares of equity in order to be delta neutral (instead of 1, which is what Natenberg makes it sound like in his book)? Thanks! Edit: I should have posted this in the Options forum. Please move this threads mods.