Neutral Option Selling Is Always About Cutting Loss Short

• Mon, Dec 12, 2022
• 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.