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@Carl K, I am doing it. :) sonoma, Thanks for your reply. @spindr0 You are right.we can't presume the stop order wont get bad fill. If you hedge a breached break even, what happens if the underlying reverses big time and crosses the strike? Now you have a 100 delta UL whacking you...

My plan is Open short straddle Strike price would be almost near to the at the money put stop order buy on upper break even and stop order sell on lower break even. Both stop order will have tighter stop loss. If market stays inbetween the strike price ,i am lucky. If market...

Options only move 1 for 1 if very deep ITM or at expiration. And then there's that tricky combination of a bit of both. (see option prograsm idea) [ Even options move 1for 1 , how much effect the time decay affect the pricing when it is near to expiration?

@butterflykondor You are right. My break even point calculation was wrong. Beyond those two areas you will start to feel the pain. That's just zero-vol (expiration) of course. You can also feel a ton of pain if the market decides to bid the shit out of vol which happens sometimes. Could...

Hi All, I am newbie to options. I have some questions regarding risk management in short straddles. Lets take an example. I am selling 1 ATM put and 1ATM call for Gold daily options when the current price is 1381.3 Daily Gold (Dec Future)1380 CALL :5.13 opening price Daily Gold (Dec...

Hi All, I am newbie to options. I have some questions regarding risk management in short straddles. Lets take an example. I am selling 1 ATM put and 1ATM call for Gold daily options when the current price is 1381.3 Daily Gold (Dec Future)1380 CALL :5.13 opening price Daily Gold (Dec...