Intraday Straddle: What are the Losses in exiting the trade intraday?

General
1

Hi,

I could see that as delta diminishes, the break even points widen( and losses deepen :D ) on reaching expiry. So what if straddle is done intraday on the most volatile stocks of the day?


960×680

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 :D ) 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 :)

2

On deciding on which day what underlying is going to be volatile.

Defining volatility ranges on intraday basis is also a tough task.

Stop losses could get hit first and later targets.

Only few scripts have options on them and apart from options on nifty 50 stocks the spreads are high even for present month contracts of other scripts.

1 Like