CFDs and delta neutral option strategies

Does anyone out there have any thoughts about strategies for substituting CFDs for actual shares in delta neutral strategies such as a long synthetic straddle. I am having difficulty in determining the methodology for estimating the delta of a CFD compared with that of a share in the same stock.

Assuming a CFD moves point-for-point with the underlying, both have a delta of 1.0.

Grant.

grantx said:

Assuming a CFD moves point-for-point with the underlying, both have a delta of 1.0.

Grant.

Click to expand...

Grant,
Thanks for that. I suspected that was the case but got confused with the effect of leverage
David

David,

Anytime.

Grant.