Comment on Option buying: The riskiest trade out there

Krishna Prasad commented on 16 Jul 2021, 05:47 PM

It is high time you solve this buying of far OTM options for hedging, For example in Iron condor , if we check in basket order it shows less margin with hedge, but in reality, do you allow all 4 trades to execute at one go in basket order with far OTM buy wings, If we short first and buy next, margin required is high ? I appreciate if you could explain with practical example step by step with respective margins and squaring of steps as well.

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