Let' say I have a largish ultra low-cost basis portfolio (did those calcs, unless the market crashes to say 500 I am better off tax-wise with gains on options) with an 80% correlation to the S&P 500 and lower beta (how much to hedge I am knowledgeable enough to calculate.) For personal reasons I need to get this sucker delta neutral. I would like to rebalance to delta neutrality on a monthly basis till the end of the year or whatever provides best risk/reward given transaction costs. I have some experience with options, but mostly I have I am always underestimating time decay (or overestimating the move.) I have considered using futures but I'm worried about getting margin calls if we get mega-upside and I have better uses for my cash than leaving it sit in a futures account protecting my butt. at least with a straight option loss is limited. Then again, it seems time decay always gets you in the end. Can anyone point me to some resources? How can I find the sweet spot? Straight Dec puts? Rolling over monthly or bi-monthly? Do I need to learn VAR analysis? That's slightly out of my league but if there are some easy-to-use tools out there I'd take it on. Thanks much.