Was talking to a few trader friends past few weeks. Some of these have been trading quite actively in F&O, may not be pro but have proper setups, charts, discipline etc.
But when I asked them asked them how do you quantify/manage your risk- like what’s your net delta right now across all your positions? I mostly got blank stares and pretty disinterested faces.
Which felt very odd to me because I know institutional trading is entirely based on risks and not on size/notional or lots. Curious if retail traders even think from risk this way at all? Or just decide the positions size based on some other factors? If there are other factors, what are these factors?
I dont look at it in terms of Delta as such… but I have a system that balances risk purely on position sizing across strikes, its intuitive to do that considering I am mostly ATM/CTM.
Institutional traders have 1000s of positions across different markets/expiries/strikes, and they have to measure greeks to have an overview of their positions.
What about you @mayank_ambastha ?
i am selling only option in stock 15% away from current price - target only 2%
IN iTC, Reliance, NTPC, Powergrid, Monthly 55 k receiving , Bond interest is coming 25k month - again reinvested in Whiteoak midcap, quant multi and invesco small cap fund
Everything include compounding 30% CAGR - that’s enough for me
Now a days selling option is costly in index - and more volatility is killing in indiex ,
No matter what the post is your reply is the same right. 