Intraday straddle selling ideas ?

[tanmayagrawal]

Guys, I am completely an intraday trader who trades bank nifty options. I am using a model which involves selling bn straddle every morning at 9:30 and putting individual stop loss of 1.4 times on each strike, I will leave the system till eod. If sl of any individual leg is hit, other leg will give profit ( if market is trending ). If market is zig zag , both give loses. If market consolidated, both legs will give profit.
I would like people to comment on this and discuss this model as to how to improve it. I have felt that there are hardly any days where both legs will give profits. Mostly one either one will give profit or both will give losses.

 

[ag_fx]

The payout curve of straddle is such that it doesn't need both legs to profit. The idea of profiting from a straddle is to have NET points making money. If you google the payout curve of a Straddle, it would help.

Here are some of the suggestions that can help you improve your system:

1. Sell it only on expiry days. The theta decay will be on your side and help you. Don't keep any SL or Target.

2. Close the Straddle in its entirety. Don't hold one leg once the other one has made a loss.

 

[LALITHA V]

DEAR AGARWAL

YOUR IDEAS ARE GREAT - UNLESS YOU BACKTEST THEM YOU WONT BE ABLE TO UNDERSTAND

REGARDS

LALITHA V

 

[kalyanikrd]

Interesting straddle strategy ideas to try on. Can’t say how well it works but finding it curious to try.