[Bhavseh]

Make sense Igor. Didn’t thought from that perspective . Thanks for educating on this side as well. So when are you planning to exit this ?

[Bhavseh]

Hi Igor

Today jul 1 2000 PUT delta hit 20. Did we buy hedge long PUT now or wait ? I guess you’ve the same position too but haven’t seen any alert for buying the hedge

Thanks
Bhavesh

[Bhavseh]

make Sense . Thanks Igor

[Bhavseh]

Hi Igor

Is there an advantage on buying two 2200 strike CALL with delta 10 , to one 2175 CALL with delta 21 ?

[Bhavseh]

Thank you for answering all the questions. You Rock Igor !!!

[Bhavseh]

Excellent.. Thanks Igor. This brings up one more question, If it continues to rally and long call is profitable but short call delta reaches 30 . do we close the long call and roll up the call spread or just let long call make the profit and don’t touch the short call ?

[Bhavseh]

One last question, Igor. If we buy long call as hedge and then market turns around, we will loose the amount paid for the long call. This will again lead to overall loss to the spread/IC . Any way to fix that ? Am I thinking correct ?

Again, Thank you for all your support.

[Bhavseh]

Make Sense. Thanks a lot Igor

[Bhavseh]

Thanks a lot Igor for clarification. Yes, I understand the 20 delta is for Short strike of either call or put and not the NET. This is just for my understanding that if the short delta is 20 then how to adjust. I guess I may have made mistake in terminology .

I mean below . I’m not sure if this does make sense but My logic was what are the other ways to reduce the NET delta other than buying straight long option.

1) Sell to Open 10 more contracts of 1930/1920 (Net 20 contracts on put side)? Since the PUT Spread current delta is 9. This will bring the NET delta from -22 to -13 –

2) Buy to close 3 contracts of 2170/2180 to reduce the NET delta by 10 (Net 7 contracts on call side)?

[Bhavseh]

Hi Igor,

I just want to understand the concept of Adjusting so please bear with me for asking a dumb question.

say, in this example
JUL 15 1930/1920/2170/2180, the Net delta is -22. So if I want to cut the NET delta in to half , there are two choices:

1) Buy 10 contracts of 1930/1920 ? Since the PUT Spread current delta is 9. This will bring the NET delta from -22 to -13 –

2) Buy 1 OTM call with delta 11 ?

3) Sell 3 contracts of 2170/2180 to reduce the NET delta by 10 ?

My Questions –
Are Approach #1 & #3 is logically correct ?
Which is the Best Approach ?
What if you go with Approach #2 and the Market reverses ?

Thanks for all your support.

Attachments:

You must be logged in to view attached files.

[Bhavseh]

Sounds good. thank you for the valuable inputs Roger.

[Bhavseh]

Thank you Igor

[Bhavseh]

Thank you Igor. So for spread use the ASK for alert rather than Mid price ?

[Bhavseh]

Hi Igor,

Thanks for this tip. I’ve couple of questions –

If we have to setup on call side delta should we use the same “At or Below” .20 or “At or Above” .20 ?

Also, can you please show an alert where one side of the spread Mid price is .35 or below so we can sell that spread at that price ?

Thanks for all your help.

Bhavesh

[Bhavseh]

Thanks Roger. I just started so not much volume. Do you use other than TOS ?

[Author]

Posts