Strategy: Vix and straddles

General
1

Hi people, I just want your opinion on my trading idea…

To trade Intraday options, going long straddle with ATMs if Vix is above 15 and going into short Straddle with ATMs if Vix is below 12 … All these should be only Intraday trades from morn 9.55 to 2.55… no preferred pre-entered stoploss or Targets… Can quit in-between if profitable or else to wait until 2.55… If there is loss due to theta decay, take it…

Trading like these for 5 months / ~100 working days, will I be profitable or will I blow my trading capital?

@nithin

2

If Vix is above 15 it doesn’t mean it will keep on rise further up. Vix may stay at 17 levels for days.If you do long straddle at that time you may loose your capital.

If Vix is below 12 means there is chances of going up if you do short straddle and VIX shoots up then also you may incur looses.

I suggest you to do reverse if u feel vix is going to up then take long straddle. If you feel VIX May fall or stay study then take short straddle.

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