HiMy question is with regards to practical hedging of “vanilla” variance swaps.I know that in theory on could hedge statically with a portfolio of calls and puts (Derman/Carr papers). However, I have been told that in practise one only buys 2-3 options around ATM and delta hedges these options daily to “catch” the variance. This is a dynamic hedge, i.e. one changes in option position depending on the movement of the underlying.I am wondering if anyone has some information about this hedging strategy. Things that would be of interest is the criteria for number of options, their strikes, the weightings and changing the position in the portfolio depending on the underlying.Any references/rules of thumb would be of great interest and appreciation.Cheers,K