Logic for Shorting a Straddle.
The option table is showing the range of 62/59;
Therefore, selling a straddle when price reaches midway also makes sense.
Logic:
From midway, the distance will be 150 points on each side. Therefore, if the premium collected is more than 150 points, then the position is secure till expiry... Unless there is a breakout of those levels. In which case, exit the spread. Till that happen one can happily consume the Theta:
At the rate of 3 points in July and 5 points in June.
The option table is showing the range of 62/59;
Therefore, selling a straddle when price reaches midway also makes sense.
Logic:
From midway, the distance will be 150 points on each side. Therefore, if the premium collected is more than 150 points, then the position is secure till expiry... Unless there is a breakout of those levels. In which case, exit the spread. Till that happen one can happily consume the Theta:
At the rate of 3 points in July and 5 points in June.