When to adjust strangle , how to adjust , what are the thing to be considered , ie like distance between strikes ( think little bit nifty direction prediction enough if adjusted at right time when moves one side ? ) or IV or Theta , OI S/R ( but OI and maxpain also changes with nifty moves ) .
im starting with example ,
i taken trade first at shorting 1 lot 17200 PE at 67.9 on 20.9.21 , at that time NS at 17537 , 17000 PE was highest OI in option chain , so shorted 17200 PE , ( IV 13.6 ) thought if fall below 17000 will buy stocks in cash ( as currently doing short term swing trades )
When nifty touched days low at 3pm changed naked short from strangle by selling 1 lot 17600 CE at 87.2 ( thought that only 8 days left , collected premium is near 153 points , so upper end would be 17750 will sell some of my holdings would be sold if nifty raise , and 17050 lower end will buy some stocks )
next day when touched and stay ed above 17550 exited PE at 66.7 and CE at 110.2 , with 23 pts loss .
Though expected wont cross below 17200 but if fell same day and also gained to high very next day so no time to gain theta value in both side only iv increased at times to increase premium values , so exited .
( say if sold 17600 CE at same time when sold 17200 PE would get more 35 pts , and this trade would be in gains , but if not adjusted after nifty crossing 17600 now its in more than 100 pts loss )
So here when should i adjusted my strangle , and what things should i consider before entering strangle
Thanks in advance to all .