1/ Longer-term short straddle: • Helps in getting a big range: trade in biweekly, monthly, or far months. • The only drawback with longer term straddles is the slippage. • Also go for round levels both in NF and BNF as they have better liquidity.

2/ Weekly expiries will have short range: • Leading to higher risk. • Would require frequent adjustments.

3/ When to sit tight? • As long as the underlying is between the breakeven point of the Short straddle, we do nothing. • Don't adjust till breakeven comes, simply sit tight. • Adjusting a short straddle typically brings in more credit, which increases the profit potential.

4/ When does a short straddle come into loss: • The moment the underlying price moves towards one end of the breakeven point, your short straddle will be in loss. • Adjustments would require additional funds, so don't go all in with your capital for shorting straddles.

5/What to do when at a loss in a short straddle? • There are various ways with which one can manage the short straddles once it goes bad: - Opening a new straddle - Rolling up the winning side - Going inverted - Opening ratio spread etc. • Methods explained in detail below:

6/Go inverted: • If one side of the straddle is challenged, the opposing short option could be rolled toward the underlying to receive additional credit. • Additional credit widens the break-even point on the challenged side of the position.

7/ Inverted short straddle continued: • Inverted position, means the short call is below the short put •Recommended when the options are near to expiry.

8/ Sell extra legs of winning side: • If the underlying is going up then one can sell 2/3 times of the winning side, to increase the upper break even.

9/ Sell one more straddle: • If one side of the straddle is challenged, open a new straddle where the underlying is trading, without closing the older straddle. •The break even range would be wider. • Now the payoff would be like a short strangle.

10/ Do a ratio on the losing side: • If the underlying is moving up continuously then open a CE ratio spread & vice-versa on the downside.

11/ Shift your straddle to where the market is trading at: • Close the old straddle and open a new straddle where the market is trading at.

12/ Do multiple short straddles, max is triple straddles: -Eg: Short straddle initiated at 37k, thereafter market moved to 38k hence open a new straddle at 38k. - Thereafter market moved to 36k so open a fresh straddle at 36k.

13/Using technicals for Short straddles: • If you've sold a straddle that has the breakeven beyond the support and resistance on the chart. • Then you can adjust proactively one the respective S/R is taken out. • If there is a range BO, you can go directional as well.

14/ When to call it quits? • When it hits the 2x of the total premium collected from the short straddle. •This should be done only when one has done few adjustments to save the position.

15/When to book profit? • ATM options have the maximum extrinsic value however it is certain that one leg would into ITM. •Take profit when you've received 25% of the max profit. • Don't let greed overtake you and exit basis defined % to be profitable in the long run.

16/ Alternatives to reduce the risk: • Convert short straddle in Ironfly, by buying legs/hedges, with a pre-defined risk. • Rather than buying both leg, one can buy only one leg (directional side) aka broken iron-fly.

Everything requires back-test & forward test: • Back-test these adjustments for the past 3-4 months. • After gaining confidence, forward test it for another 3 months with a single lot. • Understand the nuances, and only if the is profitable, you should scale up.

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