Yes if someone has good directional strategy can add more return with open delta. But will have more mtm swings also.
There is slippage sometimes which can cost you few more points of loss than planned, when sudden spikes happen. Many algo can optimize that ,...
Most days realized vol is lower than implied vol.and people who are long such options make money once in a while when sudden rallies or crash...
So each strike we sell we have preset stop loss levels . If the move is not large enough to hit portfolio stop loss, we sell further straddle,...
Also do note we trade on nse and currently it has world's highest volume on weekly options , so liquidity is not an issue....
In 2020 and 2021 we made 10 and 12 percent unleveraged , in 2022 it's approx 8, so we target mostly 6-10 percent. Like I mentioned say if 100 is...
So in India we get 5x leverage on margin . Say I use a margin of 500k usd, so max loss will be 1-2 percent of margin depending on premium at...
So we have a highly liquid weekly market .when our portfolio losses touch percent we unwind everything and book losses. We have been doing for...
So of the 52 expiry you end up making 2 percent around 60-65 percent time and lose 2 percent other 40 percent ..hard system stop loss at 2 percent
I personally know a trader who does 20 million with a semi automatic setup using a software which can adjust trade based on delta
I meant +20 to +40 , depending on iv regime .
I have been trading short gamma through strangle and straddle on index options on expiry day .I manage the position actively, to avoid gamma...
I try to be as delta neutral as possible unless I have a strong reason to keep some delta open . Also you need to sell option at multiple strike...
Hi, I have been selling straddles /strangles on weeklies for couple of years on retail and prop book. Min overnight .idea is to keep delta neutral...
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