As a retail trader, does it make sense to hedge an option position by taking an opposing position in the underlying?
If I buy a long call and short an equivalent number of the underlying so that the position delta =0, how can I ever make money?
It seems like I have no directional risk and also no profit opportunity. The move in the option and the underlying will always cancel each other. I understand how this makes sense for a market maker who makes money on the bid ask spread, but does this make sense for a retail trader?