Explanation

When selling a put option:

• The position has negative delta exposure
• To delta hedge, we need to create a position with positive delta

Given:

• Put delta = -0.363
• Position: Short put (sold put)
• Number of shares: 10,000

Delta calculation:

• Short put delta = -(-0.363) = +0.363
• Total delta exposure = 10,000 × 0.363 = 3,630

Since the short put position has positive delta of 3,630 shares equivalent, to hedge we need to take the opposite position by buying 3,630 shares of stock.

This creates a delta-neutral position where the positive delta from the short put is offset by the negative delta from the short stock position.