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A thread on ๐๐จ๐ฐ ๐๐จ ๐๐๐ฃ๐ฎ๐ฌ๐ญ ๐ ๐๐ญ๐ซ๐๐ง๐ ๐ฅ๐
1/n
1/n
1. Firstly the conditions when one should place a short strangle are when view is ๐ฌ๐ข๐๐๐ฐ๐๐ฒ๐ฌ and when you are not expecting a huge trend
2. When initiating a strangle you do NOT have great premiums so you have to be careful, but since strikes will be far off, its fine
2/n
2. When initiating a strangle you do NOT have great premiums so you have to be careful, but since strikes will be far off, its fine
2/n
3. Start with equal premiums if view is sideways, if view is mild bullish/bearish then you can skew the premiums a bit towards your view
4. The adjustments begin after one side decays by more than 50% , no need to touch the strangle till then.
3/n
4. The adjustments begin after one side decays by more than 50% , no need to touch the strangle till then.
3/n
5. Once one leg decays by 50%, just book it and again rebalance the premiums with the other strike, this will again make the strangle almost delta neutral
6. Keep doing this until you have a straddle,this will mean you have rolled multiple times and one side has been tested
4/n
6. Keep doing this until you have a straddle,this will mean you have rolled multiple times and one side has been tested
4/n
7. Now you can adjust as per straddle, if you dont know how to just refer to this tweet
https://twitter.com/ManekAgicha/status/1333801167231414276?s=20
8. If you want a video explanation of strangle adjustment in Hindi make sure to watch this video on my YouTube Channel
Retweet if u liked it
https://twitter.com/ManekAgicha/status/1333801167231414276?s=20
8. If you want a video explanation of strangle adjustment in Hindi make sure to watch this video on my YouTube Channel
Retweet if u liked it
