What to do about potential risk when we trade spx short options

You're shorting one delta puts?

 

Yep, vega and delta partly hedged..

 

How do you hedge a single delta?

 

Surely you jest

Why on earth would you sell a 1 Delta option,60 DTE??

How many of those bad boys fo you sell relative to your notional??

 

Strategy is backtested with my own software.. feb/march 2020 were my best months. I monitor the greeks constantly...

 

How are you hedging delta and vega on a $6 SPX put?

 

Different ways. Write high delta calls when vola is high. Buy put calendars when vola is low, have a long put spread above the written puts, sometimes convert written puts to written calls , etc.....

 

Very carefully

 

I don't write one SPX options, i have hundreds written puts at the moment...
Total delta is most of the time negative...

 

Shorting something close to ATM on the call side? Out to Dec (example)?

Any calendar (Dec/Jan) above 4500 is going to exceed your written prem. That doesn't make sense. Your hedge becomes the primary risk.