hy traders,
one doubt when we doing option strategies like credit spread and iron condor . we all know the correct pay off will get only in expiry day. as per the current situation like physical delivery and margin increase in last week how you guys manages this trades? because this spread maY contain ITM options
Thanks
sarath lal
Always remember if you sell option in any way you need to know option Greeks and vix they play a major role in understanding options price,n remember in india the liquidity in stock options is very less always know this risk,for stock the general thumb rule is know the iv rank of that stock to see where the stock iv is currently high or low
thanks for the reply …Very good information…Still one doubt if i do iron condor in abc option after this things went wrong stock up drastically beyond my levels …just imagine now showing big loss because of the iv shoot up …so i have to wait till expiry for correct loss as per the pay off diagram …in this condition what i do , because as i mentioned above last week margin will increase drastically …and physical settlement issue … please put some light on this …
Thanks
Iron condor have limited loss close before market tests your short side like stop loss you can manage via rolling strikes or closing them maintain a certain delta on which basis you chosen,deploy ic when iv is high
ok…thanks sir…