Portfolio delta — one number that says it all
After this module
You'll be able to use a single number to determine your portfolio's true directional exposure, and consciously choose how much you want to depend on price. You'll combine the separate parts — collateral, LPLPLiquidity Provider — deposits tokens into a pool and earns a share of trading fees.Read the lesson →, options — into one manageable system and understand why it works.
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 +56.5 SOL, that means: when SOLSOLSolana's native token. Used to pay gas and as collateral.Read the lesson → rises $1, your portfolio gains ~$56.5 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.
Delta = a compass
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 like a compass at sea. It shows which direction and how strongly your portfolio "sails" together with the price. High delta = you depend heavily on price. Low delta = you depend little. Zero delta = you don't depend on it at all.
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
- Collateral delta: 126 SOLSOLSolana's native token. Used to pay gas and as collateral.Read the lesson →. Every SOLSOLSolana's native token. Used to pay gas and as collateral.Read the lesson → has a delta of +1.00 — it's a direct asset. Total: +126 SOL
- Debt delta: USDCUSDCA USD stablecoin issued by Circle. Regulated, audited monthly. Our primary stablecoin and loan asset in the Kamino/Aave strategies.Read the lesson → is a stablecoin. Its delta = 0. Debt doesn't react to SOLSOLSolana's native token. Used to pay gas and as collateral.Read the lesson →'s price
- LP delta: the OrcaOrcaA Solana DEX with concentrated liquidity (Whirlpool). The basis of our LP strategy on the Solana network.Read the lesson → position ($64-$88) has a small delta near $88. About +11.5 SOL
- Options delta: each option's delta is multiplied by its quantity. Total for options: about -58 SOL (with adjustments: ~-81 SOLSOLSolana's native token. Used to pay gas and as collateral.Read the lesson →)
- Sum: +126 + 0 + 11.5 + (-81) = about +56.5 SOL
What does -81 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
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Options delta: -58.0 SOL
With additional adjustments, the effective delta gets close to -81 SOL. This means the options act as a hedge — "protecting" about 64% of your SOLSOLSolana's native token. Used to pay gas and as collateral.Read the lesson → exposure.
What does +56.5 SOL mean?
Net delta: ~+56.5 SOL
Total exposure: 126 SOL
Directional %: 56.5 / 126 = ~45%
In plain terms:
- If SOLSOLSolana's native token. Used to pay gas and as collateral.Read the lesson → rises $10 — the portfolio gains ~$565 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 ~$565 in value (not $1,260)
- You are 45% dependent on price — you gain from a rise, but suffer less from a drop
Which delta level is best?
Delta = 0 (neutral): the portfolio doesn't react to price. You only earn from fees and premiums. Suits those who want no directional risk at all.
Delta > 0 (our case: +56.5): the portfolio still rises with the price, just more slowly. We believe SOLSOLSolana's native token. Used to pay gas and as collateral.Read the lesson → will rise over the long run, but we want protection from large drops. 45% is a compromise between growth and protection.
Delta changes with price
Important: delta is not constant. It changes depending on the price:
What's happening here:
- When the price falls — PutPutAn option type that grants the right to SELL at a set price. Used as insurance.Read the lesson → options become more valuable — protection strengthens
- 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: +56.5 SOLSOLSolana's native token. Used to pay gas and as collateral.Read the lesson →
- Approximate profit: +56.5 x $10 = +$565
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.
You only really understand delta once you've calculated it yourself. This is a paper task — no trades, just paper or a spreadsheet (~15 min). Use the lesson's example or your own numbers.
This is learning, not investing — use only small amounts you treat as tuition.
You just summed the delta of every position into one number — most DeFi users never do this and never know how their portfolio will actually react.