Short Straddle and trading future as per Supertrend Signals

[aloksavita]

Dear Members,

Markets have two phases. Trending or sideways.
For sideways market for one lot of Nifty, Sell 2 lots each of ITM Put and Calls and pocket approx 400 points premium. This will take care of the sideways movement. Now u trade one lot of NF as per supertrend on 30 miniut chart and if there will be strong movement we can earn in nifty future. If nifty remains sideways the points lost in whipsaws will be adjusted by points earned by short straddle. In this way whatever the market condition is we will earn consistently.

 

[suri112000]

Dear Members,

Markets have two phases. Trending or sideways.
For sideways market for one lot of Nifty, Sell 2 lots each of ITM Put and Calls and pocket approx 400 points premium. This will take care of the sideways movement. Now u trade one lot of NF as per supertrend on 30 miniut chart and if there will be strong movement we can earn in nifty future. If nifty remains sideways the points lost in whipsaws will be adjusted by points earned by short straddle. In this way whatever the market condition is we will earn consistently.

Looks mouthwatering.:lol:

1.how do you tackle gaps against the position and immediate reversals only after supertrend flips signal.

2.you are holding 2 lots short position. Any trend move immediately after executing straddle will adversely affect your position because of Delta.
You are making profit otherside shorts. You hedge wrong side shorts (2 lots) with 1 lot futures. Once the BE point is broken on the wrong side, your wrong side position start with negative deltas increasing.

If you can illustrate with some examples with two moderately extreme examples of past data depicting both sideways and trending moves, it makes us to consider the strategy. Icing should be with Gaps against the positions.

 

[aloksavita]

Looks mouthwatering.:lol:

1.how do you tackle gaps against the position and immediate reversals only after supertrend flips signal.

2.you are holding 2 lots short position. Any trend move immediately after executing straddle will adversely affect your position because of Delta.
You are making profit otherside shorts. You hedge wrong side shorts (2 lots) with 1 lot futures. Once the BE point is broken on the wrong side, your wrong side position start with negative deltas increasing.

If you can illustrate with some examples with two moderately extreme examples of past data depicting both sideways and trending moves, it makes us to consider the strategy. Icing should be with Gaps against the positions.

Gaps can be favorable and non favorable. And in long run gaps will favor us if we follow supertrend. We can make short straddle of 1 lot each of PE and CE and pocket approx 200 Points.


Your second point looks valid as if any side of option becomes deep itm then delta will become 1 from .5. If you have any strategy to overcome this please advise.

 

[aloksavita]

Or we can form short straddle of onle lot each of PE and CE and pocket 200+ points.