We got a lot of days for the next series to end and the Intrinsic value is very low. Taking a naked short straddle means you are expecting market to be range bound for the next few weeks. Incase volatality comes back to the market, IV will shoot up
so you are not going to gain if :
1. volatality increases...(its a cycle, u initiated the straddle when vix is low and when vix shoots up, your premium will jump)
2. market continues in its present momentum for a tgt of 5300 (weekly chart is very bullish and 5298 is the next known resistance)
3. we have a deep correction ( with so many qip coming in and big companies raising cash, liquidity gets sucked out of the system)
preferably... buy 5200 call and 4600 put as a hedge to your position. Keeping it naked is just a bit risky.
so you are not going to gain if :
1. volatality increases...(its a cycle, u initiated the straddle when vix is low and when vix shoots up, your premium will jump)
2. market continues in its present momentum for a tgt of 5300 (weekly chart is very bullish and 5298 is the next known resistance)
3. we have a deep correction ( with so many qip coming in and big companies raising cash, liquidity gets sucked out of the system)
preferably... buy 5200 call and 4600 put as a hedge to your position. Keeping it naked is just a bit risky.