One of the metrics that is always important to keep an eye on is our directional market exposure. As a result, knowing ourat the portfolio level is an extremely useful metric. This measure allows us to convert all of our individual positions into one, aggregate number that represents our directional bias.
But all of this begs the question: could this also be applied at the individual strike level, too? In other words, when we are building our strategies in a specific stock, should we consider beta-weighting the different strikes that we might select?