I am trying to calculate the delta of an option at different strike prices where the underlying has a pronounced implied volatility skew in order to correctly hedge an options strategy.
Researching on the net and previous questions on this site imply that BS can be used, but input of the correct IV is the hard part. Tags like "the wrong number in the wrong formula to get the right price", "sticky delta vs sticky strike", "skew adjusted delta" and Derman's work are the solutions I have found so far.
Can anyone tell me if these are the latest or best methods, or is a stochastic vol model like SABR or Heston better? Is calculating one value for the position delta too optimistic - should the position delta actually be a range with associated confidence limits?