Let us say I want to establish a market neutral position. So if I buy 50 shares of stock (SPY) and I want to delta hedge, I sell an ATM covered call. So that brings the position delta to 0.
Now, I could have also hedged by buying the corresponding volatility ETF VIXY. Since when SPY goes up, VIXY goes down. And vice versa.
So how can I figure out how many shares of VIXY to buy to hedge approximately 50 shares of SPY.