Hi all,
Can we trade (Buy) straddle/strangles using NR7 set up.
Ideally they should be implemented when volatility is low, thats when you get them cheap, so assuming NR7 day occurs after period of decreasing volatility, I think buying of Straddle makes sense.
My plan:
1. On a day NR7 is likely to occur say at aroung 3:15pm we might be aware that today would be a NR7 say, buy a straddle.
2. Next day sell out one leg which is loss making (ie market moved in oppposite direction); hence you have one leg open which will be in the direction of market
3. After say a pre determined target of say 200 points movement sell the profitable leg.
4. SL still not though about it ( may be when premium paid becomes half)
Opinions invited, strategy still inception phase, meant only for those who cant be full time trader
Can we trade (Buy) straddle/strangles using NR7 set up.
Ideally they should be implemented when volatility is low, thats when you get them cheap, so assuming NR7 day occurs after period of decreasing volatility, I think buying of Straddle makes sense.
My plan:
1. On a day NR7 is likely to occur say at aroung 3:15pm we might be aware that today would be a NR7 say, buy a straddle.
2. Next day sell out one leg which is loss making (ie market moved in oppposite direction); hence you have one leg open which will be in the direction of market
3. After say a pre determined target of say 200 points movement sell the profitable leg.
4. SL still not though about it ( may be when premium paid becomes half)
Opinions invited, strategy still inception phase, meant only for those who cant be full time trader