Which is why it's good to have net-short deltas (when beta weighted against the SPY), to protect against tail risk. It's also why it's important to trade small

Which is why it's good to have net-short deltas (when beta weighted against the SPY), to protect against tail risk. It's also why it's important to trade small, and have a large number of uncorrelated positions. You can go on believing that nobody makes money doing this sort of thing over the long term. That's fine. But it's definitely not true. Derivatives have no more risk than the underlying. What makes them more risky is the leverage. Selling 1 option w/ a 0.5 delta is no more risky than selling 50 shares of the underlying.