Short Straddle – Earning When the Market Stays Still
A Short Straddle is a neutral option strategy where both an ATM Call and an ATM Put are sold at the same strike and expiry. This strategy works best when you expect the market to remain within a range and avoid any sharp directional move.
When to use:
Use a Short Straddle when volatility is low and you believe the price will stay near the current level.
Setup:
Sell ATM Call
Sell ATM Put (same strike, same expiry)
Historic Example:
In May 2024, suppose your view was that
