Can anyone share the short strangle adjustments when there is sudden fall of 500 to 900 points in Bank Nifty.
Nilesh JaiswalContributor
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Can anyone share the short strangle adjustments when there is sudden fall of 500 to 900 points in Bank Nifty.
If the market falls 500 to 900 points in 1 or 2 hours’ time, then it is easy to adjust the positions according to the movement.
But if the market falls more than 800 points in no time, then it is really difficult to adjust the positions.
But If you observe the past candles, whenever Bank Nifty falls 800 to 900 points in just a single or two candles (5 min) there must be a short covering of at least 30-40%.
It is suggested to do adjustments after the short covering to minimize the losses.