@Pathik_Trader Indeed Pathik bhai, it's the most dangerous scenario for any kind of option writer. The way i handle it is by converting a straddle/strangle into ratio spreads which i have explained in the past in the below tweets. Usually it's only one side where premiums are spiking. +
@Pathik_Trader So we need to stay away from that side & convert our position to the opposite side in ratios.
Many go the 920 straddle way, that is exiting the losing leg & running the profit one. The only problem with that is that by doing that they have exited the non-directional realm +
Many go the 920 straddle way, that is exiting the losing leg & running the profit one. The only problem with that is that by doing that they have exited the non-directional realm +
@Pathik_Trader & gone the directional way. So if market reverts then they have no way to hide. So it's kind of a hit or miss type of situation they get themselves in.
Curated below few of my past tweets on this subject & how i handled my position. +
Curated below few of my past tweets on this subject & how i handled my position. +
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