adjustment of short strangle

jetking

Well-Known Member
#1
hi,

i am in the learning phase of option trading

mostly i do short strangle

but i am at a loss about how to adjust the short strangle,when it is going into the loss

i have only one plan to adjust

whenever nifty reaches within 50 point range of my short pair's,top/bottom strike,i roll over my position to next higher strike of same month or next month
this approach keep my loss to minimum,but i am not satisfied

so would like to know,if i can use some other adjustment,better than what i use

here are my trades for this month

would like to know if these trades could have been managed better?

on 12 aug,initiated a short strangle of Aug 7800--7500 pair at a premium of 78,nifty was at 7660

14 aug,nifty at 7750

covered this pair at a profit of 12 points and shorted sep 7900==7500 pair at a premium of 136

18 aug nifty at 7850

closed the pair at a loss of 12 points and sold sep 8000==7600 pair at a premium of 121

proposed adjustment when nifty at 7950:

close this pair and short 8100==7700 pair

now this pair is running in a loss of 7 point..........

would really appreciate the suggestion of all experienced option traders to improve my knowledge further

thanks
 
Last edited:

jetking

Well-Known Member
#2
>60 views and no reply.........................


i think all option traders are busy in money counting......

:rofl::rofl::rofl:
 

copypasteaee

Humbled by Markets
#3
>60 views and no reply.........................


i think all option traders are busy in money counting......

:rofl::rofl::rofl:
many way to do things.... generally ppl try to keep their delta neutral and in some extreme cases i have seen ppl goin for gamma neutral strategies.... hope this helps. Try reading Guy Cohen.
 

jetking

Well-Known Member
#4
many way to do things.... generally ppl try to keep their delta neutral and in some extreme cases i have seen ppl goin for gamma neutral strategies.... hope this helps. Try reading Guy Cohen.
thanks,
but it is not much useful to me

i do not have option tools to calculate greeks

would have been better if u could give a practical answer with respect to above mentioned trades i took
thanks
 
#5
#6
@Jetking

You do ask for help with your current short strangle the way you do manage at the moment. Did you analyze what you posted in post one? What can you clearly see when doing so?

If you see it, then the question comes up: Why do you trade in such a market short strangles? What about leg in and out or even adjust/change your choose'd option strategy to what the chart shows in smaller and in bigger time frames? Take care :)
 
#8
Always set stop loss mentally, because short strangle carries unlimited risk. My stop loss is set at 2x of the premium I'm collecting. And sometimes x based on probability.
 

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