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A thread on ๐๐จ๐ฐ ๐๐จ ๐๐๐ฃ๐ฎ๐ฌ๐ญ ๐ ๐๐ญ๐ซ๐๐๐๐ฅ๐
1/n
1/n
1. First of all one should know when to do a straddle, ideally when premiums are good and view is ๐ฌ๐ข๐๐๐ฐ๐๐ฒ๐ฌ or when you are not expecting a huge trend.
2. When you do place a straddle, you will have good premiums so you will be covered for a good amount of move.
2/n
2. When you do place a straddle, you will have good premiums so you will be covered for a good amount of move.
2/n
3. Find your breakevens, and ideally delta should also be neutral.
4. Do not adjust until your BEP is breached or the delta exceeds (+/-)40, whatever happens first, generally delta limit will breach first.
5. When delta reached lets say -40 it means you have to roll puts.
3/n
4. Do not adjust until your BEP is breached or the delta exceeds (+/-)40, whatever happens first, generally delta limit will breach first.
5. When delta reached lets say -40 it means you have to roll puts.
3/n
6. Just book profits in the current short put and roll put up by matching the premiums, delta should again be close to neutral but one can choose to have a little -ve delta since if there is mean reversion, PEs will spike.
7. This means you will be going Inverted(Short ITM)
4/n
7. This means you will be going Inverted(Short ITM)
4/n
8. Keep repeating the same process until expiry OR till either one option reaches 100 delta which will mean that you basically are short/long one future lot.
9. As soon as any option reaches 100 delta, just book the straddle be it in loss or profit, dont adjust at all.
5/n
9. As soon as any option reaches 100 delta, just book the straddle be it in loss or profit, dont adjust at all.
5/n
10. While doing this keep in mind a loss limit(1-2% of cap), just get out if loss gets out of hand. "You cant play if you dont have chips"
11. If you want a video explanation check this Hindi video out on my YouTube channel
Retweet if you gained value
11. If you want a video explanation check this Hindi video out on my YouTube channel
Retweet if you gained value
