Quote from GATrader:
Congrats on the good day . I do have a question. Why did you buy all those combos 36 on the put and 20 on the call and only scalp 200 sh. Were you just equalizing deltas on those extreme fade points? Hence the huge qty of calls/puts? Thanks
36 puts + 20 calls were delta neutral at the entry . I could of choose any interval ( 100 , 200 , 400 shares) and PnL would of be very similar. Based on stock's action , 100 shares adjustment would yield the best PnL even after larger commissions.
The bigger the interval---> the bigger the profit per trade, BUT less occurrences.
Not sure if I understand about extreme fade points ; I have my own Excel file with B&S that calculates adjustments via stock based on the Last price. Its simply tells me to buy ( or sell) the new unit , which I set up on 200 on this trade.