If i deploy bull put unfold technique by shopping for 1 OTM Put choice (leg 1) promoting 1 ITM Put choice (leg 2) and if the market goes in opposition to my technique my purchase leg(strike) could be in revenue and promote leg (strike) can be in loss.
my doubt is am i able to e book the revenue in purchase leg and once more hedge the promote leg
I imply the one strike which is in “revenue”. instance
promote banknifty 52400 pe (1 lot)purchase banknifty 52300 pe (1 lot)
and banknifty goes to 52000 , then i’ll in loss on 52400 pe and revenue in 52300 pe strikes. my query is can shut , 52300 pe after which purchase 52200 pe as an hedge once more
Normally once you placed on a ramification, it ought to come off as a ramification except you’re a really superior dealer.
Preserve a take revenue goal of 50-75% of your max revenue and a stoploss of 100% of your take revenue goal.
Undoubtedly you’ll be able to take revenue from purchase leg and alter your commerce of promote leg by some new postion. It’s only for advance merchants who perceive what they’re doing and what stands out as the implications.
