Straddle strategy for option trading

Option Trading Strategies

1. Mahesh Chandra Sharma Associate Professor, Department of Commerce Shaheed Bhagat Singh Evening college (University of Delhi) You can watch my video on this topic in My Youtube Channel: Learn with M C Sharma Option Trading Strategies Link for Video: https://youtu.be/iQTxB0OOHCU

2. What is straddle? A straddle is a neutral options strategy that involves S imultaneously either BUYING OR SELLING B oth : a PUT option and a CALL option For the same UNDERLYING SECURITY (NIFTY, BANK NIFTY, RELIANCE, ETC) W ith the same  STRIKE PRICE and the same  EXPIRATION DATE https://youtu.be/iQTxB0OOHCU

3. Types of Straddles LONG STRADDLE SIMULTANEOUSLY BUYING both a PUT option and a CALL option for the underlying security (NIFTY, BANK NIFTY,ETC) with the same STRIKE PRICE and the same EXPIRATION DATE. SHORT STRADDLE SIMULTANEOUSLY SELLING both a PUT option and a CALL option for the underlying security (NIFTY, BANK NIFTY,ETC) with the same STRIKE PRICE and the same EXPIRATION DATE.

4. When to use Straddle? LONG STRADDLE When market looks trending Before a big event SHORT STRADDLE When market looks neutral No big event in near future or in the day

5. NIFTY 50 INDEX on 15 th Feb 2022

6. NIFTY 17 TH FEB 16950 PE

7. NIFTY 17 TH FEB 16950 CE

8. My Trades on 15 th Feb 2022

9. Trade on 15 th February 2022 NIFTY INDEX at 9.30 AM: 16940 : NIFTY STRIKE PRICE 16950 NIFTY Long STRADDLE, SL 40% BUY NIFTY 16950 CE @ 153 (9.33 AM) BUY NIFTY 16950 PE @ 140 (9.33 AM) SELL NIFTY 16950 CE @ 423 (3.15 PM) SELL NIFTY 16950 PE @ 24 (3.15 PM) SL 84 PROFIT = CE 50@270 = 13500 Loss = PE 50@116 = - 5800 Net Profit = 7,700 IF SL OF 56 POINTS PROFIT = 13500 -2800 = 10700 NIFTY SHORT STRADDLE, SL 40% SELL NIFTY 16950 CE @ 153 (9.33 AM) SELL NIFTY 16950 PE @ 140 (9.33 AM) BUY 16950 CE at SL @40% 215 (Loss 62 points) Buy 16950 PE @ 24 Profit @ 116 points Net Profit = 54 points * 50 = 2700

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12. You can join my telegram channel ‘Learn with M C Sharma’ In which I post my trades and other educational contents Link is given in the description box. I am Associate Professor in Shaheed Bhagat Singh Evening College (University of Delhi) Very soon I shall conduct a Full Day training Programme in my College, for which information shall be posted in my telegram channel.