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Hedging defined risk strategies
- Thread starter joanar
- Start date
Of course there is a point..
But keep in mind there are different approaches to trading defined risk strategies...
Some may risk 1 to make 3 and stop themselves when they are down 1...
If it's a cheap fly/ calendar,you may opt to punt and let the spread go to your target...
If I trade a fly with a large debit and skew edge,I most certainly Delta hedge....
But keep in mind there are different approaches to trading defined risk strategies...
Some may risk 1 to make 3 and stop themselves when they are down 1...
If it's a cheap fly/ calendar,you may opt to punt and let the spread go to your target...
If I trade a fly with a large debit and skew edge,I most certainly Delta hedge....
Is there any point in delta hedging defined risk strategies such as ICs or are they generally only Vega/ Gamma hedged?
I would say no because i The trade no longer becomes defined risk. But I still do it all the time.
Also depends on how you are defining Delta hedging.
Are you strictly referring to adjusting with the underlying or also including rolling/purchasing/selling of options..
If you are in a wide condor,you can adjust your short verts distance and effectively the Delta by
Buying/Selling flys..
Are you strictly referring to adjusting with the underlying or also including rolling/purchasing/selling of options..
If you are in a wide condor,you can adjust your short verts distance and effectively the Delta by
Buying/Selling flys..
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Also depends on how you are defining Delta hedging.
Are you strictly referring to adjusting with the underlying or also including rolling/purchasing/selling of options..
If you are in a wide condor,you can adjust your short verts distance and effectively the Delta by
Buying/Selling flys..
thats a good point. Fixed premium can mean a lot of things. If you are long the body of a fly and short really wide wings, then technically it’s fixed premium but practically it’s a naked straddle.