Question

When you are long an option and you delta hedge, you want volatility to increase and...

When you are long an option and you delta hedge, you want

volatility to increase and the underlying to move around a lot

volatility to decrease and the underlying to just stop moving

traders talking a lot about other asset classes and ignore your underlying

the cost of carry to narrow

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ANSWER DOWN BELOW. FEEL FREE TO ASK ANY DOUBTS. THUMBS UP PLEASE.

When you long an option and delta hedge,

The value of this portfolio Increase when an Increase in the volatility of the price of underlying and Underlying moving a lot.

Answer: Volatility to increase and underlying to move around a lot.

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