I have a Short Straddle in which I am selling 1 Call and 1 Put.
So based on the condition and price of bank nifty option, I am squaring off either call or Put, And then I sell one more Call or Put to balance.
Now this new position which I have taken, Will it be Set Number 1, Condition number 1 and Leg Number 3 or it will be 1 or 2?
Later on if I keep adjusting the straddle as per the requirement then what will be the numbers?