Hi There so i have been trying to learn and do paper trades since past few months specifically for short straddles and i have a few questions and if someone can help :
- Trades are executed after 920 Am only once the CE and pe premium become equal
ques : From all the videos and theory that i have read it always says wait for premium to become equal in short straddle what is the reason for this
- When doing short straddle it is said that Friday to Tues is good with same week expiry and for wed and thur move to next week
Ques : How is this parameter defined to when to stay in the same week and when to move to next week is it premiums that give this indication (the reason i am aware to move wed and thur to next week is to stay safe from gamma spikes)
- Short straddles only work specific months of the year and eventually you need to change to strangles
Ques : Is it really like this that there would be specific months or days where you can do this if yes what are those months and how does one get the indication that now if executed it will fail.
(The reason how i see it is that if i am giving taking premium both side of say 50 then my sl will be very close so if there is a gamma spike i might loose both legs but this is just my assumption)
Thank you for reading this through
Appretiate you giving time and answers