Hedge
A conservative strategy used to limit investment loss by effectinga transaction which offsets an existing position.
Hedge Ratio
The mathematical quantity that is equal to the delta of an option. It is useful in that a theoretically neutral hedge can be established by taking offsetting positions in the underlying asset.
Holder
The purchaser of an option.
Horizontal Spread
An option strategy in which the options have the same striking price but different expiration dates.