Positions Management Example

This nested strangle combination position  exposes a vega risk of $19.71 per 1% increase of implied volatility (IV) move.  TSLA stock is very volatile and it's IV can vary as much as 6-8% within a given trading day. Any increase in IV will present a net negative P&L. Adjustments recommended and made (see above). 

The transactions exercised reduced the vega risk to $3.64 while maintaining the delta neutral position (the objective) and without compromising a generous theta decay financial benefit.

This single options position management ran one month resulting in $1,100+ gains in a $50,000 account.