July 17, 2018

Definedge: 11000 straddles hints at rangebound market

Although Nifty is showing some weakness since morning, the 11000 straddle is still going down.

If this weakness is going to continue further, this straddle should turn up.

As long as this straddle is going down, Nifty can remain sideways between 10900-10930 on the lower side and 11050-11100 on the higher side.

straddle

Source: http://www.definedge.com/11000-straddle-update/

My notes based on very limited understanding: anyone who bought 11000 straddle at Friday close is still in loss even though markets went down Monday and VIX increased by 4-5%. The option writer is in profit.

Only if the straddle value increases can one expect a big move in the market. As of now that is not happening.


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