Neutral Option Selling Is Always About Cutting Loss Short
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Mon, Dec 12, 2022
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One-minute read
- By Praful Kulkarni Option Seller Interview with
- Our job is risk management, not making profit. Market gives profit.
- ==Neutral Strategy gives 70%-75% Probability to Profit, 25% Loss will be very large, but what matters is the ability cutting short losses of that 25%. ==
- One question one should ask is that “Theta” or “Delta”
- One should be clear if they have to capture “Theta” or “Delta”.
- Delta then sell “ITM” or buy “ITM”, “short future”.
- Theta capture then “OTM” but then risky.