Sir
I have a contrarian view and I think it will be more logical to buy this straddle. Due to present volatile and uncertain market scenario, writing at the money options will be very risky.
Nifty closed at 3280. Incase the Global markets stabilise or recover little bit, there could be a strong rally due to short covering and buying support from some institutuios.
If you buy this straddle, I agree that you will break even only above 3800+ or below 3000. But any considerable movement in either way will bring some profit as 3400 strike price is very active and still some time value is left. Dont wait till expiry, book profit/square off with in 5-7 trading sessions. As it is buying, your risk is defined and if you write, it will create lot of tension till expiry in this volatile scenario.
Regards