Get started

Shortstraddle

Execute Short Straddle at current strikeNSE:NIFTY After the rally from 19300 range till 20000 nifty is now started its consolidation. This is the right time to execute the short straddle for the 21 Sep Expiry. Options Short Straddle: Sell 2100 CE & 2100 PE - 21st Sep (Straddle) Buy 19900 PE - 21St Sep (Hedge Trade) Buy 20300 CE - 21st Sep (Hedge Trade) Max Profit - 7,128/- Max Loss - 2,873/- !!! Caution !!! - Must execute these trades on 15th before 10.00 AM Must Exit all the trades at the same time. on 21st Sep by 3 Pm. Please check the below link for the graphical representation of the stratergy. https : // sbull.co/s/DNmBYjyo / Follow me and message me for any discussions.
NSE:NIFTY
by karthik0712
Opening (Margin): /MES April 21st 3960 Short Straddle... for a 225.00 ($1135.00 max) credit. Comments: The 30-day IV isn't as high as I would like at 20.5, nor is the IVR (11.5%), but you can't always have everything. Will look to make additive adjustments first to get to the size of position I want and then look to just manage sides to delta balance. Starting out skewed just a smidge short here, but I'll naturally adjust if the market has other ideas on its mind. I'm generally looking to get 25% of total credits collected (25% of $1135.00 would be $283.75 in profit), but won't be hesitant to take quick profit and then re-establish.
CME_MINI:MES1!
by NaughtyPines
Opening (Margin): /MCL March 16th 78 Short Straddle... for a 7.10 credit. Comments: I still have a little bit of time in this cycle (35 DTE) to putz around with reverse gamma scalping /MCL, so putting on a fresh short straddle at the 78 strike for the starter position. Will generally look to make additive adjustments to keep the delta/theta ratio <1.0 right up until 21 DTE, at which time I'll take the whole pile of pasta off. Current break evens for the setup are 70.90 on the put side, 85.10 on the call. 7.10 credit on buying power effect of 9.88, 71.8% return on capital as a function of buying power at max, 18.0% at 25% max.* * -- Generally, I look to take profit on short straddles at 25% of max.
NYMEX:MCL1!
by NaughtyPines
2
Opening (Margin): /MES March 17th 4075 Short Straddle... for a 199.75 credit. Comments: 199.75 credit (998.75 max) on buying power effect of 1038.55; 96.2% ROC at max; 24.0% at 25% max.* A different form of a reverse gamma scalping setup using short straddles. In this case, delta adjustments are made using additive skewed short straddles to delta balance. For example, if the position skews out to -20 short delta, you sell a slightly skewed long delta short strangle to delta balance. I'm intending to leave the entire position on (the original plus any skewed straddle adjustments) running into no later than about half way into the cycle (21 DTE), but will pull the entire thing off in profit earlier if I get an opportunity to do so. An example of a short straddle that is skewed long delta: March 17th 4140 short straddle, +19 delta (put deeper in-the-money than the call). An example of a short straddle that is skewed short: March 17th 4020 short straddle, -20 delta (call deeper in-the-money than the put). * -- With short straddles, I generally look to take profit at 25% max, since these have less room to be wrong than a short strangle. Most at-the-money short straddles set up with expected move break evens, which is less room to be wrong than I would ordinarily set up with a short strangle, where I generally set up sides at 2 x the expected move.
CME_MINI:MES1!
by NaughtyPines
2
Opening (Margin): /MCL March 16th 79.25 Short Straddle... for a 9.19 credit. Comments: A short delta additive adjustment trade here to cut net long delta in my entire /MCL position by about half, with the goal being to keep the delta/theta ratio under 1.0. The entire position still leans net long, but I will leave it that way to see if the market does some of the lifting for me. Total credits collected of 13.90. As with my /MES reverse gamma scalping setup, looking to take about 25% of total credits received out of the position, closing it out in its entirety at no later than about half way through the cycle (i.e., around 21 DTE) before moving on to the next monthly. For those of you just tuning in: This is not a standalone trade. It is an adjustment to an existing position with delta/theta metrics peculiar to that position. Unless you have that exact same position on with the exact same delta/theta metrics, this trade will only be informational or educational as to how to make an additive delta adjustment to a position you currently have on, particularly using a skewed short straddle to accomplish the task. I would note that this isn't the only way in which to adjust position net delta; it is just the tool I am using in this particular case. The entire position is also nondirectional by nature with the sole effort being to keep the net position's zero delta/gamma point within shouting distance of current price with various delta adjustments, some of which will be additive (adding contracts), some of which will be subtractive (closing out contracts). I have no opinion as to where oil goes from here or how much it will move in any given day or over a given time frame or whether a particular level is important or not for price action purposes. This type of setup is basically a bet that the underlying stays within the expected move (EM) or some factor of the expected move as determined by options delta and little else.
NYMEX:MCL1!
by NaughtyPines
Rolled (Margin): NVDA October 21st 210 Short Call to 160for a 3.88 credit. Comments: Rolled to a short straddle today. Total credits collected of 11.56 with a cost basis of 148.44/share if assigned on the 160 short put. It's not great relative to where it's trading now, but I'm getting whipped on both the call and the put side, so I guess the benefit of a covered call (if it goes that way) is that I'll eliminate call side risk. I'm indicating it's "long" here, since the delta metric is 49 or so, but don't have a particular opinion on where NVDA goes from here.
NASDAQ:NVDALong
by NaughtyPines
This Week's Buck Bangers: QQQ, UNG, BITO, ARKK, KWEBI haven't done one of these in a while ... . Here's how this works (basically). I price out the at-the-money short straddle in the expiry nearest 45 days. I'm generally not going to do a short straddle as a setup, but it helps me rank underlyings by what they're paying in risk premium as a function of strike price to help me utilize what I've got in the most efficient way possible. In the vast majority of cases, this will line up with a screener that just ranks underlyings by 30-day IV (i.e., an underlying having a higher 30-day will beat out one with a lower 30-day), but I also want to get an objective idea in dollar and cents terms as to what a given underlying is paying and see, over time, what is "worth it" and what is not (e.g., is 5.0% ROC as a function of strike price "too little" to be worth it). This also helps me to evaluate whether IVR or percentile is somewhat misleading, usually due to an oversized volatility spike in the past-52 weeks or, conversely, extremely low volatility over the past 52 weeks. It's usually the former, but there have been lengthy periods of extremely low IV where a "pop" can occur that pushes IVR to 100, but is still an IV too low to be worthwhile from a dollar and cents/ROC %-age standpoint. And although I'm pricing out short strangles and straddles here, the approach is basically the same with defined risk (iron condors, iron flies): (1) Price out short straddles; (2) Rank them by ROC %-age as a function of buying power effect; (3) Then price out an iron condor/iron fly setup. Broad Market: QQQ: August 26th 292 short straddle paying 23.06, 7.9% as a function of strike price. IWM: August 26th 173 short straddle, paying 12.93, 7.5% as a function of strike price. SPY: August 26th 385 short straddle, paying 23.91, 6.2% as a function of strike price. This shows me that QQQ is the "buck banger" amongst the broad market exchange-traded funds, after which I price out preliminary setups at preliminary strikes (since price may move between now and NY open, at which point I'll have to adjust my strikes). QQQ August 26th 353/412 is paying 5.25 at the mid price on a buying power effect of 50.17, 10.5% as a function of buying power effect. Exchange-Traded Funds UNG: August 26th 24 short straddle, paying 5.92, 24.7% as a function of strike price. BITO: August 26th 13 short straddle, paying 2.72, 20.9% as a function of strike price. ARKK: August 26th 44 short straddle, paying 7.73, 17.6% as a function of strike price. KWEB: August 26th 29 short straddle, paying 4.59, 15.8% as a function of strike price. XOP: August 26th 116 short straddle, paying 16.11, 13.9% as a function of strike price. GDXJ: August 26th 30 short straddle, paying 4.12, 13.7% as a function of strike price. USO: August 26th 73.5 short straddle, paying 9.68, 13.2% as a function of strike price. XBI: August 26th 82.5 short straddle, paying 10.63, 12.9% as a function of strike price. XME: August 26th 43 short straddle, paying 5.43, 12.6% as a function of strike price. JETS: August 26th 17 short straddle, paying 2.09, 12.3% as a function of strike price. Here, there are actually underlyings that I could contemplate going short straddle on: UNG, BITO, and JETS. This is because a short strangle probably isn't going to pay enough for me to make it worthwhile, since I want to generally take profit at 50% max on short strangles; 25% max on short straddles, with 1.00 credit kind of minimum credit received for a short strangle and 2.00 in short straddles. 50% of 1.00, after all, is .50 ($50), as is 25% of a 2.00 short straddle. There are also a couple of additional considerations here, one of which is that not every one of these has liquid weeklies, so I may have to either go to September (61 days) or just wait until the September duration to shorten a bit. Alternatively, I can consider putting a smidge of September on here, reexamining what's paying next week, put a little more on, etc. Point in fact, this is how I generally like to do things, reserving the broad market ETF's for the weeklies (IWM, QQQ, and SPY are all pretty liquid in those), and leaving other ETF's for the monthlies. Consequently, I could consider doing the UNG and BITO short straddles as September setups, with the UNG September 16th 24 short straddle paying 7.30 on buying power effect of 14.57, 50.1% ROC as a function of buying power effect (on margin) and the BITO September 16th 13 short straddle paying 3.32 on buying power effect of 13.12 (on margin), 25.3% ROC as function of buying power effect. Neither really ties up a humungous amount of buying power. As a potential 3rd candidate (if I don't want to play natty or -- basically -- crypto) would be the ARKK September 16th 34/57, 2.09 on buying power effect of 4.43 (on margin), 47.2% ROC as a function of buying power effect. Looked at from the ROC%-age perspective, UNG is the "sexiest" premium selling play, followed by ARKK, followed by BITO. Now, go out and bang your bucks ... .
Editors' picks
NASDAQ:QQQ
by NaughtyPines
16
Rolling: NVDA February 18th 242.5C/265P to March 18th 265*... short straddle for a 1.23 credit. Comments: I will probably regret playing through earnings, but throwing a smidge of caution to the wind by uninverting my short strangle and rolling it to the 265 short straddle in March. Total credits collected of 30.02 with break evens of 234.98 on the put side, 295.02 on the call. Will look to roll up untested side on approaching worthless or on side break even test. * -- Depicted at the 270 strike to avoid overlap with the February 18th 265 Short Put.
NASDAQ:NVDA
by NaughtyPines
Rolling: XLK February 18th Short Strangles to March 18th 160... short straddle. Comments: Locking in some realized gains by rolling the 151/160 and the 157C/158P inverted out to the March 18th 160 short straddle. I had to do this in separate rolls, receiving 7.19 in credits for the roll of the 151/160 and 3.67 for the roll of the slightly inverted 157C/158P. I've collected a grand total of 22.07 in credits (11.035/contract) relative to a current setup value of 11.75 per contract, so am still slightly underwater in the position. As usual, will continue to do defensive adjustments as necessary to keep from getting too directional.
AMEX:XLK
by NaughtyPines
4