Thread on T+0 line

What is (t+0 line) BLUE LINE in your payoff tells about your system?

1) FALLING LINE:

If you are t+0 line is falling down , you may lose money if the market moves unidirectional.

good breakevens

High theta decay

Moderate Delta

Example: IRON FLY

2) RISING LINE:

If you are t+0 line is rising up , you may lose money if the market is sideways .

very poor breakevens.

Zero theta decay

High delta

Example: LONG STRADDLE

3) FLAT LINE: ( my personal set up)

If you are t+0 line is flatten , you may not lose in any the market situation till some extent.

Decent breakevens

Moderate Theta decay

Very low Delta

Example: PROTECTED IRON FLY

4) STEEP DOWNFALL:

If you are t+0 line is falling too steep , you may lose in unidirectional move.

Brilliant breakevens

High Theta decay

High Delta

Example: SHORT STRADDLE