Posted by DigiNomad on 25th of Jul 2022 at 03:31 pm
You can divide one long contract by shorting a number of shares
equal to 1/2 the current delta (if you want to take off 1/2 risk).
Note that using delta this way requires adjustments along the way
as volatility and time to expiration change (the other
greeks)...but it's always worked pretty well for me, especially in
short term situations.
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You can divide one long
SPY and ES systems early trade notification
Posted by DigiNomad on 25th of Jul 2022 at 03:31 pm
You can divide one long contract by shorting a number of shares equal to 1/2 the current delta (if you want to take off 1/2 risk). Note that using delta this way requires adjustments along the way as volatility and time to expiration change (the other greeks)...but it's always worked pretty well for me, especially in short term situations.