LD Lossdog Research
strategy

delta neutralization

2 matching records.

Trade idea

MU delta neutralization

The speaker discusses using futures for delta neutralization, specifically mentioning the use of stock for hedging in the case of MU. The strategy involves using futures to hedge against market movements, with a preference for micro futures due to their smaller size and ease of trading. The speaker also mentions the use of ES or NQ futures for hedging delta, indicating a preference for these instruments over stocks for broader market exposure.

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Strategydelta neutralization
Assetstock
Time horizonNot explicitly stated
Entry / triggerIf the market moves against the position
Target / exitNot explicitly stated
Invalidation / stopNot explicitly stated
SpeakerJeff
Risks
  • Market volatility
  • Liquidity issues with specific stocks or futures
  • Inability to hedge effectively if the market moves rapidly
shortEquityshortdelta neutralizationMU
medium confidenceVerify in video at 1:06:42 ↗
Q&A

What is your typical hedging strategy?

The speaker prefers using futures for hedging, specifically mentioning the use of micro futures for smaller accounts. They also discuss the use of ES or NQ futures for delta neutralization, and the use of specific stocks like MU for hedging when necessary. The speaker also mentions the importance of account size and the availability of micro futures.

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Actionable takeawayUsing futures, particularly micro futures, is a preferred method for hedging in the speaker's strategy. The choice of futures or stocks depends on the specific market exposure and account size.
delta neutralizationfutures trading
high confidenceVerify in video at 1:06:17 ↗