Books and resources for option hedging (especially short term and long term hedging)

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Hello,

Does anyone have any resources/books/tips on how to hedge your options (delta, gamma, vega, skew, and theta) hedge for very short term options like those that expire within a week or expire tomorrow?

And additionally, does anyone have any resources/books/tips on how to hedge a long dated option, like 1 year+, maybe 3 years+ etc...

I am hoping to view this from a market maker standpoint, with most focus on managing gamma/delta, vega, and and maybe a bit skew. Theta I'm not as worried about. Really delta/gamma and vega hedging are what I am most interested in.

Thanks!
 
For short dated equity options, Theta and Delta are the most important. Delta is easy to hedge. Most MM will hedge out their theta with short-dated index options.

Leaps have a lot of VEGA risk, but unless there is a corporate action, leap Vol does not typically change much.
Delta is easy. You do not hedge gamma.

The reality is that with options, you need to have risk on at least one greek, or you can't make money.
 
Robert Morse said:
For short dated equity options, Theta and Delta are the most important. Delta is easy to hedge. Most MM will hedge out their theta with short-dated index options.

Leaps have a lot of VEGA risk, but unless there is a corporate action, leap Vol does not typically change much.
Delta is easy. You do not hedge gamma.

The reality is that with options, you need to have risk on at least one greek, or you can't make money.
More...
Thank you. When I meant gamma, I meant managing a large gamma such as when you are close to expiration and short an ATM option.
 
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