Yes but view was bearish
U being the option writer . How did u manage the trade today ?
How do u hedge ? What is ur hedging strategy?
Just take the opposite of my position or trades, you will be in 100% profit. Any trade I take, the market will move in opposite direction. I will soon start a tip line for sharing my stupid decisions so that others can profit.
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mostly ke saath ye hi hota hai
Dude I have a question about SL in option writing. I have seen unusual spikes post 1:30pm on expiry day which can take an option from x to x+50 in no time even for OTMs. So would hedging be better? Also is this SL spike a regular occurence on most expiries?(I have recently started BNF writing). Can u suggest what would be better for a short strangle writer ie SL = 2*premium collected or hedge ie transition to partial/full iron condor? P.S. @velu and all other option players, pls advise. TIA.
My two bits:
Writing options at the last hour of expiry is a recipe for disaster.
Might work for most, not for me.
You are better off trying an iron condor at the beginning of the series without a stop loss, rather roll up/ down.
Doing two strategic IC during the course of the week is more helpful than firefighting vega.
In such a method, it’s convenient to exit all positions before 1.30 expiry day
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On a day when the volatility decides to take a break, and let the bulls and bears sleep with each other… 
What about expiry day writing? I have only tried spread for overnight option writing and strictly strangles on expiry intraday which is working good. But my fear is of these deadly spikes which take out even fairly big SLs. So what should be a solution to this considering that I would ideally like to exercise my options w/o fidgeting with adjustments/hedges/SL changes ?
What is the ROI (Monthly or yearly) u r achieving consistantly if ur capital > 10 Lacs?
Well, as a naive answer, I can only say what I know best- write extremely far out of the money and do nothing when there’s an injection of vega.
Well knowing that what goes up is bound to obey Newton.
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So a deep SL should do the job right like a 2-3x SL?Also can SL prices be skipped in a blackswan when a really OTM option transitions ITM? experienced option players pls share your thoughts.
If a 100% SL wont do the trick, nothing else can- I have read in an article.
Its very rare that a 150% SL has been more successful than say a 100% SL.
Since you were discussing expiry day writing, I am assuming there’s no blackswan at that moment.
If it did, it’s sad. You could just buy protective options at say 5 to 10 ps, on both strangles. Perhaps as a consolation.
My SL on the call side is usually 3x/4x…
Put side it’s 5x
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Thanks man @velu makes it so clear now! I assume u have higher put SLs to negate the fear of the impending fall/lockdown candle which has a higher probability than say a Nirmala candle right? I also wanted to know can SL prices/orders be skipped/missed even at 3x/5x and at round numbers by the exchange during a big move/blackswan day?because if that happens then aren’t writers wiped out completely?
Lol brother. I remember my early days. Evry one will pass these days and reach a stage where u will find sanity… good luck
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If the SL is near the upper or lower circuit , then there is a high possibility of slips .
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