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![Smile :) :)](data:image/gif;base64,R0lGODlhAQABAIAAAAAAAP///yH5BAEAAAAALAAAAAABAAEAAAIBRAA7)
I could see that as delta diminishes, the break even points widen( and losses deepen
![](http://www.danielstrading.com/wp-content/uploads/2013/05/futures-options-strategies_long-straddle_960x680.png)
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
Please guide me what are the challenges I may face in keeping this as the primary strategy(not occasional) for daily trading?
Thank you