Ricky, I am not using delta as the primary input for adjusting or adding to the trade. If XLE begins to swing in one direction with velocity, I will buy puts or calls to flatten out the delta; perhaps reduce it by half to two thirds, depending on the circumstances. My main focus at this point in the trade is the break even points.
RFH
--- In OptionClub@yahoogroups.com, Ricky Jimenez <rickyjim@...> wrote:
>
> On Fri, 30 Jul 2010 19:54:29 -0000, "RobertH"
> <robhansen5252@...> wrote:
>
> >Delta is certainly checked each day. I have the position entered as a simulated trade on TOS and I get to see their amazing risk graphs both during the day and at night when I enter all of the prices into an excel spreadsheet.
> >
> >
> >RFH
>
> And depending on the value of Delta, you do what each day and why?
>
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