Sold itm straddle
- Thread starter clarodina
- Start date
You did know you are playing in one of a very high risk strategies ?
How long you has been in option trading ?
This is precisely the strategy Nick Leeson used to bankrupt Barings Bank.
C'mon guys, give him a break. From his question its obvious he hasnt got a clue what he's talking about, unless he typed "sold" instead of "bought".
Listen up! Check your models. You will see that the delta swings back and forth with the underlying.
Hedge the delta exposure that you don't want in case the underlying "runs away" against you.
If this is a short options position that you will hold past an earnings date, I suggest you close the position immediately.
If you have to ask again, you don't understand what we are telling you. Close the position and hit the books.
Hedge the delta exposure that you don't want in case the underlying "runs away" against you.
If this is a short options position that you will hold past an earnings date, I suggest you close the position immediately.
If you have to ask again, you don't understand what we are telling you. Close the position and hit the books.
Not even sure if he know how to hedge the delta or other greeks