Hey all. Curious to know your thoughts on this strategy.
Going long a straddle with a limit sell for 20% gain. Basically we need SPX to move in a direction for a bit to hit our sale target.
If SPX doesn't move, we sell for 40% loss.
2 wins offset each loss.
I won't hold to expiration, because IV is higher than RV.
I won't open trade during high IV days.
Posted by Prize_Status_3585
1 Comment
You should find a vol. range that works well.
Not playing high IV days sounds good, but you need vol. to expand for your straddle to get juiced.
Else you’re left playing low IV days and hoping IV pops intraday (hope is not a strategy).