Confirm and Send: Portfolio Delta Management for Market Neutrality
Update: 2025-08-21
Description
The market opened with weakness across indices, with E-minis down 27, NASDAQ down 104, Dow down 179, and Russell down 15 - all approximately 0.4% lower. Volatility futures were up 35 ticks.
In the Confirm & Send segment, Nick and Mike clarified that "trading small" means risking 1-3% of account value per position (ideally under 5%), while "trading often" happens naturally over time. They explained why they prefer diagonal spreads over call debit spreads, and emphasized delta as more important than theta for portfolio management.
For a $100,000 account, maintaining plus or minus 500 deltas represents a neutral position, with potential to lean 1,000-1,500 deltas long or short based on market outlook.
Nick and Mike also advised a 15-year-old trader to diversify their $5,500 account with bullish put spreads, bearish call spreads, and neutral iron condors, while suggesting two to three times credit received as a reasonable stop-loss for unmanaged positions
In the Confirm & Send segment, Nick and Mike clarified that "trading small" means risking 1-3% of account value per position (ideally under 5%), while "trading often" happens naturally over time. They explained why they prefer diagonal spreads over call debit spreads, and emphasized delta as more important than theta for portfolio management.
For a $100,000 account, maintaining plus or minus 500 deltas represents a neutral position, with potential to lean 1,000-1,500 deltas long or short based on market outlook.
Nick and Mike also advised a 15-year-old trader to diversify their $5,500 account with bullish put spreads, bearish call spreads, and neutral iron condors, while suggesting two to three times credit received as a reasonable stop-loss for unmanaged positions
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