The best way to hedge your risk on a delta neutral is to use a combination of strategies such as options, futures, and swaps. By utilizing a combination of these strategies, you can cover multiple market scenarios and reduce your overall risk. For example, if you are hedging against a decline in the market, you can buy put options to protect against a drop in the price of the underlying asset. Additionally, you can use futures and swaps to further diversify your risk. By diversifying your risk, you can ensure that you are not overly exposed to a single market scenario. Furthermore, it is important to re-hedge regularly as the markets can change quickly and you want to ensure that your hedging strategies remain effective.
