if u sell 4400 stradle based on closig price, you wold have got 420 points and this covers 4000-4800 range. as an insurance buy 5000 call for 26 rs and 3900 put for 58 rs, you still have 340 points in yr pocket.
i will paper trade this strategy. i dont expect a circuit break on monday or tuesday. if nothing happens in budget, expect the premims to drop substantially.
Bandlab, certainly a nice option trade to benefit from high premium. Nicely covered for the risk as well.
Will be looking forward to discuss this. In my observation, straddle will never give max profit (cause difficult to find the strike price of 4400 where market will close on expiry)..
So always there will be some residual value in the straddle.
But we should close it before the expiry.
Till that time, let inevitable facts, i.e. time decay and drop in premium to reasonable level work in our favour.
Happy Trading.