I would recommend that retail traders readjust delta by using the underlying instrument when trading US Equity options so that they can have limit orders out on both sides of the market. For example if you have a delta neutral back spread at ratio of 2:1 you can place limit orders at about where you figure your delta will be 1.1 or 0.9 and go back and forth between the two.
Delta neutral trading is not expensive comissionwise if you use a super discount broker like IB. At IB the option comissions are $1 and on a small order the stock commissions are $1 also. If you had a delta neutal trade: short 300 shares of stock and long 6 at the money calls, for example, the adjustment costs (cover some stock or sell a call - or the reverse) would cost only a few dollars. Considering that with the delta neutral approach you can win if the market moves either way it can be a fairly conservative way to trade. To say that it is not suitable for the small trader is simply misguided. I guess the particular instructor just did not want to get bogged down wanted to cover a lot of ground and dismissed delta neutral out of expediency. Comissions are a big factor in profitability and the low rates make all kinds of strategies even on a modest scsle possible.
************ Sounds right , instructor rightly didnt want to get bogged down and dismissed delta neutral out of expediency, which is related to word expedition. And while its details are beyound the scope of this forum and a somewhat over simplication for sure; liked the hedge another elitetrader mentioned -a stop loss
delta neutral is always recommended to avoid overnight gap risk when you think there's going to be an explosive gap move (foreign elections, currency instability, etc.) but are not sure which direction it is headed. you should use it as a risk-reducing function for these events because that's what it is. delta neutral is also traded if your primary goal is to capture volatility differences. in that case, it wouldn't be suitable for the retail trader unless you have fairly sizable capital.