Hi guys, I'm new to the forum. I'm trying to protect myself against a large move in either direction of the underlying equity or a large positive move in IV on both legs of a straddle/strangle. Should I just put in some good for 60 days limit buy orders for each leg? Problem is because this is a delta neutral trade I can't put limit orders on each side of each option to buy to cover. I'm familiar with oco oca orders, I was thinking maybe these would help me.. Let me know if I'm being clear enough.
I think it depends on your broker. ToS lets you do stop, limit, trailing stop etc on multi-leg positions, like if a short straddle gets to a certain value.
Options house doesn't have stop loss orders on spreads, and if I put stop loss orders or limit orders on each leg then one would automatically be exercised...
Spreads? Or straddles & strangles? Or all? I set price alerts on positions so that if a certain price is exceeded, BEEP BEEP. If you aren't able to monitor naked positions all day, you shouldn't be in them unless the negative outcome is acceptable (like selling naked puts to acquire stock or calls to get short).