In case of ratio spreads, I keep the top two legs untouched and keep on adjusting the outer leg as per the market movement.
If we take the current position, Long 11700 PE and Short 11600 PE legs are untouched until this whole position is closed.
The outer leg 11300 PE is adjusted when NF broke 11500.
As part of the adjustment,11700 CE was selected since I expect NF not to break the recent high of 11700 -11800 for this series.
As a rule, I adjust short PE positions immediately and while adjusting short CEs, its generally wait and watch approach.
In the above case, my plan was to revert back the adjustment once NF starts trading above 11500 consistently. Now as it is trading above 11500, I am in wait and watch mode. If it trades positive on Monday also, I will move the 11700 CE short position either to 11300 PE or 11500 PE.
If we take the current position, Long 11700 PE and Short 11600 PE legs are untouched until this whole position is closed.
The outer leg 11300 PE is adjusted when NF broke 11500.
As part of the adjustment,11700 CE was selected since I expect NF not to break the recent high of 11700 -11800 for this series.
As a rule, I adjust short PE positions immediately and while adjusting short CEs, its generally wait and watch approach.
In the above case, my plan was to revert back the adjustment once NF starts trading above 11500 consistently. Now as it is trading above 11500, I am in wait and watch mode. If it trades positive on Monday also, I will move the 11700 CE short position either to 11300 PE or 11500 PE.