ways to control short risk

Discussion in 'Options' started by Baozi, Apr 26, 2022.

  1. Baozi

    Baozi

    Very interesting.. I got 2 questions:

    1) why don't you just sell some wings in the very moment you roll? Why waiting later?

    2) in which ratio are you long wings vs the shorts?
     
    #11     May 7, 2022
  2. Because when i roll i expect the market to go lower. Better to sell wings at the moment you see a change in market direction. But you can sell some wings in the moment you roll.
    Most of the time i use ratio of 1 to 5.
     
    #12     May 7, 2022