Overview

A short straddle is an options strategy that involves selling both a call and a put option with the same strike price and expiration date.

A short straddle is an options strategy that involves selling both a call and a put option with the same strike price and expiration date. This strategy profits from low market volatility, as the trader collects the premium from both options and benefits when the underlying asset remains near the strike price at expiration. However, it carries unlimited risk if the asset moves significantly in either direction. Our lattice-based short straddle algorithm is an advanced intraday trading system designed to optimize short straddle execution using lattice-based mathematical models. By analyzing market structure and volatility dynamics, the algorithm strategically sells at-the-money (ATM) call and put options to capitalize on stable price movements. It continuously monitors risk factors and market shifts, adjusting the strategy dynamically to enhance returns and mitigate exposure. All positions are squared off before market close, ensuring disciplined risk management and avoiding overnight uncertainties.

Backtested Results
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Backtesting results are based on past data. Historical data does not guarantee future results.

Key Parameters

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Drawdown

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Risk : Reward

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Frequency of trade

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moderate Risk

Risk

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This algo is managed by...

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Stratzy

INH000009180 SEBI registered algo provider

Algos in market
Algos in market24
Active since
Active since5 Years
Deployed by
Deployed by12.5K users

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Frequently Asked Questions

What is the meaning of Lattice?

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Lattice refers to the Lattice Mathematical Theory, which helps structure decision-making. In this case, it's used to define the logic behind generating a Short Straddle strategy in the algo.

Why is the algo trading only 1 lot, but the performance report shows a higher total quantity traded?

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Does the Algo have an SL, or does it exit only at 3:10 PM?

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What is the amount I can start with?

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How frequently does the Algo execute trades?

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Can I manually exit from the Algo trade?

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