دکتر ارنست

دکتر ارنست

11-09-2022

05:28

Here will explain how we I adjustments for ratio spread . Bank nifty at 40100 i bought 40500 ce , sold 41000 ce and sold 2x of 41700 ce. Adjustments if trade in our favor :-

1) If market reach to our 1st buy position exit 40500 and enter 40600 by this adjustments loss is become zero on down side and if market stay above 40600 start selling puts premium which is equal to 41700 call sell premium. Now i am following this adjustment.

Convert to Butterfly:- If market reach to 40500 . Exit 41700 with loss and sold 41000 one more lot and buy 41500 ce so convert to butterfly and hold.

Convert to Debit Spread:- If market reach to 40500 . Exit 41700 with loss and exit 40500 ce with profit and sold 40600 ce . So it will become debit spread with good R:R

Convert to strangle:- If market reach to 40500 . Exit 40500 and 41000 ce with profit and hold 41700 ce and now sold put which is equal to 41700 ce premium convert to strangle and do adjustment like strangle.

Convert to IF:- If market reach to 41000 . Exit 40500 ce with profit and 41700 ce with loss. Now we have 41000 ce 1 lot so sell 1 lot 41000 pe and buy hedge and convert to IF.

Adjustments if trade is in not our favor :- 1) I deployed this trade on Thursday so i don't do any adjustments till Monday if trade is not in my favor.

2) If monday if still trade is my against will see near support Ex: 40000 . If 40000 break will book profit in 41700 ce and move to 41500 ce just to minimize loss in down side .

3) If bank nifty break previous week low which is 39250 will book profit in 41500 ce and sell one lot of 41000 ce . so now i have have 40500 ce buy and 41000 ce sell 2 lots . SL for this is if BN reach to 40000 level.

Like this way will do Ratio spread adjustments . Till now i shared Butterfly , Strangle and Ratio spread adjustments . Future will share IF adjustments. Thanks....


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