Hi,
I could see that as delta diminishes, the break even points widen( and losses deepen
) on reaching expiry. So what if straddle is done intraday on the most volatile stocks of the day?
I know this strategy if used at right times could be profitable. But I want to use it like,
Open computer - Pick the most volatile - Make a straddle - Set Stop loss and target(I think, both will book profits ) at 1% after slippage/Ask price, charges etc.
Please guide me what are the challenges I may face in keeping this as the primary strategy(not occasional) for daily trading?
Thank you
I could see that as delta diminishes, the break even points widen( and losses deepen
) on reaching expiry. So what if straddle is done intraday on the most volatile stocks of the day?
I know this strategy if used at right times could be profitable. But I want to use it like,
Open computer - Pick the most volatile - Make a straddle - Set Stop loss and target(I think, both will book profits
) at 1% after slippage/Ask price, charges etc.Please guide me what are the challenges I may face in keeping this as the primary strategy(not occasional) for daily trading?
Thank you