**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.