Delta neutral is a term that option players sometimes use. In common use, it means that a position does not change as the stock price changes. What? Why would anyone want a position that doesn't change with the stock price? Isn't it all about being long or short and being right? Option players often use strategies such as spreads, straddles, butterflies, iron condors. Many make their money by being delta neutral and making money on the time decay. For those who want to know more, here is the CBOE link.
My BAB British Air went to delta neutral this morning, but it wasn't necessarily a good thing. The stock is up big on earnings. However, I sold the May 60 call, so see no benefit from today's increase in price. Such is life for someone doing covered calls. The premium seems so small when there is a big jump up in price, or a big decline. I remind myself it is about the odds, and the odds favor the option seller.
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