Portfolio delta — one number that says it all

What is portfolio delta?

Portfolio delta (portfolio sensitivity to price) is a single number that shows how much your portfolio gains or loses when the price changes by $1.

If your net delta is +79.5 SOL, that means: when SOLSOLSolana's native token. Used to pay gas and as collateral.Read the lesson → rises $1, your portfolio gains ~$79.5 in value.

In this module we bring together everything we learned in Modules 3-5: SOLSOLSolana's native token. Used to pay gas and as collateral.Read the lesson → collateral (KaminoKaminoSolana lending protocol. In our strategy: SOL collateral to a USDC loan.Read the lesson →/AaveAaveEthereum lending protocol (v3). In our strategy: ETH collateral to a USDC loan.Read the lesson →), a USDCUSDCA USD stablecoin issued by Circle. Regulated, audited monthly. Our primary stablecoin and loan asset in the Kamino/Aave strategies.Read the lesson → liquidity position (OrcaOrcaA Solana DEX with concentrated liquidity (Whirlpool). The basis of our LP strategy on the Solana network.Read the lesson →/UniswapUniswapAn Ethereum concentrated-liquidity protocol (V3/V4). Its Solana counterpart is Orca.Read the lesson →), and PutPutAn option type that grants the right to SELL at a set price. Used as insurance.Read the lesson →/CallCallAn option type that grants the right to BUY at the strike price. The opposite of a put.Read the lesson → options (DeribitDeribitA crypto options exchange. In our strategy this is where we buy put protection and sell covered calls.Read the lesson →). DeltaDeltaAn option's price sensitivity to the underlying price. Delta 0.50 means: if the underlying rises $1, the option price rises about $0.50.Read the lesson → is the one number that shows how everything together reacts to price changes.

Why isn't delta simply the SOL amount?

Because a DeFiDeFiDecentralized Finance — financial services without intermediaries, operating through smart contracts.Read the lesson → portfolio has many parts. Each reacts to price differently:

How we calculate it

What does -58 SOL from options mean?

Let's look at just the options:

Long Put $90:   200 x (-0.42) = -84.0
Short Put $65:  100 x (+0.18) = +18.0
Short Put $60:  100 x (+0.12) = +12.0
Short Call $160:  50 x (-0.08) =  -4.0
                                -------
Options delta:                  -58.0 SOL

-58 SOL is the options delta — we make no extra adjustments to it. This means the options act as a hedge — "protecting" about 46% of your SOLSOLSolana's native token. Used to pay gas and as collateral.Read the lesson → exposure (58 out of 126).

What does +79.5 SOL mean?

Net delta:        ~+79.5 SOL
Total exposure:   126 SOL
Directional %:    79.5 / 126 = ~63%

In plain terms:

• If SOLSOLSolana's native token. Used to pay gas and as collateral.Read the lesson → rises $10 — the portfolio gains ~$795 in value (not $1,260 as it would without protection)
• If SOLSOLSolana's native token. Used to pay gas and as collateral.Read the lesson → falls $10 — the portfolio loses ~$795 in value (not $1,260)
• You are 63% dependent on price — you gain roughly a third less from a rise than you would unprotected, but you also suffer roughly a third less from a drop

Delta changes with price

Important: delta is not constant. It changes depending on the price:

What's happening here:

• As the price falls to around $80, the Long PutPutAn option type that grants the right to SELL at a set price. Used as insurance.Read the lesson → $90 strengthens and protection grows (options delta moves from -58 to -75 SOLSOLSolana's native token. Used to pay gas and as collateral.Read the lesson →)
• But below that, protection weakens. At $70 and $60 the short PutsPutAn option type that grants the right to SELL at a set price. Used as insurance.Read the lesson → at $65 and $60 go in-the-money and start working against you — they eat into the long PutPutAn option type that grants the right to SELL at a set price. Used as insurance.Read the lesson →'s protection. The options delta comes back to -62 and -45 SOLSOLSolana's native token. Used to pay gas and as collateral.Read the lesson →, and the directional % climbs to 71% and 92%
• Below $60 the Put Spread is used up. Its maximum payout is roughly 200 × ($90−$60) − 100 × ($65−$60) = $5,500, and it will not give more. From that point you are almost fully exposed to price again. This is the key weakness of the structure — the protection "floor" is fixed
• When the price rises — PutPutAn option type that grants the right to SELL at a set price. Used as insurance.Read the lesson → delta shrinks — protection weakens. But that's fine — the collateral's value is growing

A quick P&L estimate

Portfolio profit = Net Delta x Price change

Example:

• SOLSOLSolana's native token. Used to pay gas and as collateral.Read the lesson →: $88 rises to $98 (+$10)
• Net delta: +79.5 SOLSOLSolana's native token. Used to pay gas and as collateral.Read the lesson →
• Approximate profit: +79.5 x $10 = +$795

What the platform shows

DeFiDeFiDecentralized Finance — financial services without intermediaries, operating through smart contracts.Read the lesson → Risk OS shows net delta in real time:

• Delta widget — at the top of the main page
• Delta breakdown — each part's contribution
• Delta chart — how delta changes at different prices
• Alerts — when delta crosses your set limits

At a glance you can see: is my portfolio too exposed to risk, or too closed off? Once you understand delta, this kind of control becomes possible — you decide for yourself how much price movement you want to feel, and see it in real time.

Summary

Next step: Now let's move to the first full strategy — the Operations Playbook.