To all option sellers, Whenever I am selling an option first I am utilising my 20%-25% capital only if the trade goes against me I will exit my sell position if the option doubles or 2.5X From my sell position initially I am using only 25% capital I will not lose more 1/n
I can recover that small loss position with a fresh new trade.
I am adding more positions once the sold option is in my favour. So my selling avg as well as SL will also come down.
Once the sold option is down by 50% I will keep SL at C2C to get more gain. 2/n
Even after adding if it starts going to opposite I will cut at C2C and will start selling the opposite option with the same rule.
If you will follow this rule you will never be at a big loss.
For the overnight position carry a small position or do it with a hedge.
That’s all n/n
Remember never avg loss-making position.