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    IF Adjustments

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    Kkrkumar
    The document discusses deploying and adjusting an iron fly options strategy. It begins by explaining that an iron fly combines two credit spreads. It then provides guidelines for when to deploy an iron fly based on market views. The document outlines a specific iron fly position using Bank Nifty strikes and discusses focusing on range, profit, or loss depending on risk preferences. Finally, it details two adjustment strategies - extra selling and reverse buying - and provides examples of how to implement them based on market movement scenarios. The document concludes by noting the required capital per lot and adding a disclaimer.

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    IF Adjustments

    Uploaded by

    Kkrkumar
    37 views5 pages
    The document discusses deploying and adjusting an iron fly options strategy. It begins by explaining that an iron fly combines two credit spreads. It then provides guidelines for when to deploy an iron fly based on market views. The document outlines a specific iron fly position using Bank Nifty strikes and discusses focusing on range, profit, or loss depending on risk preferences. Finally, it details two adjustment strategies - extra selling and reverse buying - and provides examples of how to implement them based on market movement scenarios. The document concludes by noting the required capital per lot and adding a disclaimer.

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    The document discusses deploying and adjusting an iron fly options strategy. It begins by explaining that an iron fly combines two credit spreads. It then provides guidelines for when to deploy an iron fly based on market views. The document outlines a specific iron fly position using Bank Nifty strikes and discusses focusing on range, profit, or loss depending on risk preferences. Finally, it details two adjustment strategies - extra selling and reverse buying - and provides examples of how to implement them based on market movement scenarios. The document concludes by noting the required capital per lot and adding a disclaimer.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    37 views5 pages

    IF Adjustments

    Uploaded by

    Kkrkumar
    The document discusses deploying and adjusting an iron fly options strategy. It begins by explaining that an iron fly combines two credit spreads. It then provides guidelines for when to deploy an iron fly based on market views. The document outlines a specific iron fly position using Bank Nifty strikes and discusses focusing on range, profit, or loss depending on risk preferences. Finally, it details two adjustment strategies - extra selling and reverse buying - and provides examples of how to implement them based on market movement scenarios. The document concludes by noting the required capital per lot and adding a disclaimer.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 5

    Iron Fly (IF) Deploy and Adjustments

     Every strategy in options is just combination of Credit Spread and Debit spread like

    Iron fly is combination of Two credit spreads


    Butterfly is combination of Credit and Debit Spreads
    Ratio Spread is nothing but Debit spread with extra sells

    When to deploy IF :-

    1) Your view is non directional.


    2) When your view is directional you go with Bullish / Bearish IF so that break even will
    increase in that direction.
    Bank nifty Spot is at 43600 so I selected Strikes of 15th Dec Expiry.

    Strike selection for Neutral view IF :-


    43600 ce and 43600 pe sell
    43000 pe Buy
    44200 ce buy

    I selected each strike with 600 points spread difference. You can select strikes with
    300/400/500/600 points spread difference also. Depends on your view / risk / reward.

    1
    When you deploy IF consider 3 Parameters .
    1) Range
    2) Profit
    3) Loss

     If you focus on Big Range select buy wings far from straddle and vice versa.
     If you focus on Max Profit select buy wings far from straddle and vice versa.
     If you focus on less loss select buy wings Near from straddle and vice versa.

    So it depends on individual risk/screen time / Full time or part time trading / Capital /
    Peace of trading.

    I will prefer to select last option so that my loss will be in control and I can do my office
    work with peace of mind. So, its totally depends on Individual.

    2
    Types of Adjustments on IF :-
    1) Broken wing Fly
    2) Extra sells
    3) Reveres buying
    4) Deploy Butterfly or Ladder
    5) Deploy Ratio spread
    6) Deploy debit spread

    Among those adjustments some strategies require high capital / some require less capital all
    adjustments are good but it depends on how much capital do you have and which is suitable
    to your phycology .

    Most of the time will prefer do Extra selling and reverse buying only.

    In this I will explain Extra sells and Reverse buying adjustments .

    Reverse buying and Extra sell Adjustments:-

    In this strategy we have break even at 43200 and 44000

    3
    After deploy this IF see Bank nifty spot chart with 1 Hr time frame . Find near by support
    and Resistance.

    Case 1:- Market direction is Upside.

     If you marked 43800 is Resistance and 43400 is Support . Till market test
    both the levels and closed above or below 15 mints candle wont do any
    adjustments.

     If market test 43800 levels and hold for 15 mints then exit 43000 pe and
    enter 43200 pe with debit of 20 to 30 rs . Immediately sell 42800 below
    puts equal to the debit you paid.

     If market going up side and breaks 44000 and hold just move 43200 to
    43300 pe so that down side become loss free and if extra sell position 80%
    premium decayed then exit that put and sold next week puts below 42500
    puts because current week we don’t get much premiums.

     If market retrace to our straddle or break come below the marked


    resistance then move 44200 ce to 44000 ce made reverse buying and make
    loss free on the both the side and sold 45000 above calls in next week for
    extra credit.

    Case 2 :- Market direction is Downside.

     If you marked 43800 is Resistance and 43400 is Support . Till market test
    both the levels and closed above or below 15 mints candle wont do any
    adjustments.

     If market test 43400 levels and hold for 15 mints then exit 44200 ce and
    enter 44000 ce with debit of 20 to 30 rs . Immediately sell 44500 above
    calls equal to the debit you paid.
    4
     If market going down side and breaks 43000 and hold just move 44000 to
    43800 ce so that up side become loss free and if extra sell position 80%
    premium decayed then exit that calls and sold next week calls below 45000
    calls because current week we don’t get much premiums.

     If market retrace to our straddle or break come above the marked support
    then move 43000 pe to 43200 pe made reverse buying and make loss free
    on the both the side and sold 42500 below puts in next week for extra
    credit.

    Capital: - 70k per 1 lot required.

    Keep Learning and Keep Growing 😍

    Thanks,
    Suresh Kumar
    Twitter ID: @suresh_kumar047

    https://twitter.com/Suresh_kumar047?t=faPKAFIR1ODA4OJ-U5Qx5w&s=08

    Disclaimer: - These Strategies I have learned from paid trainers, youtubers,


    books, some of the twitter handles, websites and google. These are not created by
    me and nobody so anybody can learn and use. Just learning purpose i have
    prepared this. So you can find someone using this strategy and future also
    somebody will use these strategies so these are available for free everywhere.

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