Iron Fly Sensibull

Hello All,

I need to know something related to options. I am trying for the first time to sell options with hedging using Iron fly on Nifty 17450 strike which I took on 13th Apr for this current week expiry. When I analyzed in Sensibull, for 1 lot with 4 legs, I saw max profit and max loss before entering the position. It was all good and making sense till today 2:45 PM, after which the position started to bleed and it is also ok as market crashed in last 45 minutes.

But, 2385 was the max loss I saw in Sensibull, but currently, I am seeing 2520 as unrealized. I am really concerned how this can happen. Please let me know if I am missing something to understand.

Options selling profit varies on different facts like delta, theta and Vega …

When market falls suddenly Vega will rise which in turn directly effects on increase in option prices.

Sensibull can only give approximate values but not exact values. So even u have taken perfectly hedged postion there are chances to increase in loss a little.

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thank you Laxman. So, can I assume that it will be at the max + or - 5% of what it shows even in the worst case.

I guess the max loss you saw on sensibull is on the day of expiry. If you hold the position till expiry your max loss will be same as sensibull.