Pilates
11-09
I closed $AI 20241108 22.5 PUT$  ,Short strangles are a good way to collect income on a weekly basis . ๐Ÿ™Œ๐Ÿป๐Ÿ™Œ๐Ÿป๐Ÿ™Œ๐Ÿป๐Ÿ™Œ๐Ÿป
AI PUT
11-08 22:48
US20241108 22.5
SidePriceRealized P&L
Buy
Close
0.01+93.06%
Closed
C3.ai, Inc.
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Comments

  • MarketPulse
    11-09
    MarketPulse
    Just curious when you short it how do you deal with if the buyer exercises the option before it expires? I wonder how you all hedge such risks [Thinking]
    • MarketPulse:ย 
      Thank you very much for sharing! [love you]
    • PilatesReplyMarketPulse:ย 
      Normally I look for delta 0.16/-0.16 and below if I want a lower possibility of assignment . But this just serve as a general guide. There are other factors to consider also like expiry and premiums
    • MarketPulse:ย 
      Thanks for sharing, this really help me improve my knowledge. Thanks [Smile]
    • Pilates:ย 
      However in the scenario it happens, I am ready for my stock to get called away thru the CC oR purchase it thru the CSP.


      Most common way of hedging is iron condor, but the payoff is not good enough for me personally. lol hope this helps .
    • MarketPulse:ย 
      I see, at what level are you consider a reasonable low delta? Or you decide it based on the historical data of each stockโ€™s options? Glad to learn a lots from you [Smile]
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