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  #11 (permalink)  
Old 24-04-2014, 11:49 AM
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Originally Posted by shiv View Post
bhai as you explain here all are the things are well clarified , can u tell what is the corelation of breakeven point of strangle , as i supposed to cut the positions at or when the price move or trade upward or downward of the specific strike price . ( my view is to design or hold the strangle is only for 1 to 3-4 days if the price does not go above or below the strike price i will cut my positions , whether it is giving me profit or loss )

please guide

BTW , are you using Option Oracle ?
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Old 24-04-2014, 12:01 PM
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not yet sunshine , i downloaded it earlier but its is not working well
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Old 24-04-2014, 05:27 PM
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Find the "Options Oracle " thread . Matsol has given a solution and it is working . You can use strategies there .
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Old 25-04-2014, 01:41 AM
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Originally Posted by shiv View Post
bhai as you explain here all are the things are well clarified , can u tell what is the corelation of breakeven point of strangle , as i supposed to cut the positions at or when the price move or trade upward or downward of the specific strike price . ( my view is to design or hold the strangle is only for 1 to 3-4 days if the price does not go above or below the strike price i will cut my positions , whether it is giving me profit or loss )

It isn not a function of holding the positions for 3-4 days. It is a function of how far is the expiry. The same position will behave very differently in the next 3-4 days depending on how far away expiry is. If you get into a front month strangle on the monday of expiry week, then the behavior is very different from getting into the front month strangle on the monday after expiry.

Like I mentioned above, your query is not as simple to answer as you expect it to be. Please go through a few options books. Understand the black scholes option pricing formula. Understand how the various greeks behave and what is the relationship between the various greeks, strike price, time to expiry, price of underlying, etc. JJ has a few good threads where he tries to explain these factors. Go through them after you understand the BS option pricing formula.

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Old 29-10-2014, 10:44 AM
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Originally Posted by shiv View Post
thanks jj bhai ys i will cut both legs ( not mine ) but at what price 1243 or 1287

I guess u should bug out of both legs basically when total selling price > total buying price.
Rest is about volatility, decay etc
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Old 29-10-2014, 11:27 AM
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Also about gamma
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