A New Straddle/Strangle Options Strategy to Get Mind-Blowing Results!

The 9.20 short straddle/strangle is an option strategy that relies on low volatility.
The current market environment, characterized by increased volatility, unpredictable price movements, and overcrowding, has made it challenging to profit from this strategy.
My Website - indrazith.com
What is a Short Straddle?
Before we dive into the 9.20 part, let's understand what a short straddle is. It's a simple options trading strategy where you:
Sell a call option and a put option simultaneously.
Both options have the same strike price and expiration date.
You're betting that the underlying stock's price will not move much. If the stock price stays relatively stable, you make a profit. However, if the stock price moves significantly in either direction (up or down), you can lose money.
Why 9.20?
The "9.20" in the strategy refers to the time of execution in Indian markets. The market opens at 9:15 AM, and this strategy is typically executed 5 minutes after the open, at 9:20 AM. The idea is to capitalize on the initial volatility that often occurs right after the market opens.
How Does it Work?
Market Open: The market opens at 9:15 AM, and there's often a flurry of buying and selling, causing price fluctuations.
Selling Options: At 9:20 AM, you sell a call option and a put option with the same strike price (usually the current market price) and a short-term expiration (like the same day).
Profiting from Low Volatility: If the stock price remains relatively stable throughout the day, both the call and put options will lose value. You keep the premium you received from selling these options as profit.
Risk of Loss: If the stock price moves significantly up or down, one of the options will become profitable, and you'll lose money.
Key Points to Remember:
High Risk: This strategy involves high risk as a large price movement can lead to significant losses.
Short-Term: It's typically an intraday strategy, with options expiring on the same day.
Volatility: It relies on low volatility after the initial market open.
Requires Experience: Understanding options trading is crucial before attempting this strategy.
In essence, the 9.20 short straddle is a high-risk, high-reward strategy that aims to profit from the expected low volatility in the initial trading hours of the Indian market. However, it's essential to have a thorough understanding of options trading and risk management before implementing it.
Why is it Failing Now?
The 9.20 short straddle has been facing challenges due to several factors:
Increased Volatility: The current market is experiencing higher than usual price swings. This means the stock price is more likely to move significantly, leading to losses for short straddle traders.
Smart Money Participation: Large institutional investors are becoming more active, causing sudden and sharp price movements, which can be detrimental to short straddle positions.
Option Greeks: Options prices are influenced by factors like volatility, time decay, and interest rates. Recent market conditions have made these factors unfavorable for short straddle traders.
Overcrowding: As the strategy became popular, more traders started using it, leading to increased competition and reduced profit potential.
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[@ashwinikhanna]

Very nice video. I wish you made this video 1 year back. I left intraday short straddle because of lot of loss making.

[@SreekalaDinesh-ur6cw]

I would like to ask you is it possible to make 3000 per expiry 5 day a week with one lac or 1.5 lac capital doing intraday calender spread Pls respond

[@indrazith1]

3000 on one lakh capital is 3% per day. On 5 days it will be 15%. For a month 60% (not including the capital appreciation here). This is unreasonable expectations from the market

[@santanudas5006]

Thanks for the classic video, I already improvised my Bank Nifty Straddle with changes in time, giving better results, I will also try up with the RSI & ADX

[@TheRamanacv]

What that changes sir

[@santanudas5006]

​@@TheRamanacvSir I have changed the entry time to 1030 with one time re execute

[@sanjaytatpati8902]

Good take on the subject. Your practical approach gives confidence. Thanks for the content.

[@davindermakhija]

The basic reason for straddle and strangle is daily expiry. It's creating more volatility. Sl hits are so frequent 😢

[@indrazith1]

Market conditions have changed. So we need to be smart to avoid taking SL. This is the reason I have provided some useful tips in this video

[@caramireddych]

Anna Humble Request to you please do a video on how to do a back test.

[@HarneetSinghKharbanda]

Nice content as always bro 🙂

[@indrazith1]

Thanks bro 🙏

[@ShiningSTAR-y9z]

Good strategy 🙏

[@THOTTON]

Thank you, Sir.

[@brajeshrathore2255]

❤❤❤❤

[@brajeshrathore2255]

❤❤❤❤

[@arulselvamgopal]

Thank you for your practical trading ideas, its awesome