What is a Short Straddle?
The Short Straddle is available as a predefined strategy in the Firstock terminal. It can be deployed in just a few clicks, without the need to manually select both option legs.
🔹 Step-by-Step Deployment
- Login to Firstock
- Open the Firstock web or mobile app and sign in with your credentials.
- Open Option Chain / Strategy Watchlist
- Navigate to the Strategy Watchlist or directly open the Option Chain for Nifty (or your chosen stock/index).
- Select Predefined Strategy
- From the predefined strategy list, choose “Short Straddle.”
- Click on Build
- For Nifty, the system automatically selects:
- ATM Call → Sell (1 lot)
- ATM Put → Sell (1 lot)
- For Nifty, the system automatically selects:
- Save & Deploy
- Review the strikes, total premium received, and margin requirements.
- Click Save and Deploy to execute the strategy.
🔹 What You Get After Deployment
Once deployed, Firstock instantly provides:
- Payoff Chart (profit/loss profile at expiry)
- Option Greeks (Delta, Gamma, Theta, Vega)
- Breakeven Points (upper and lower)
- Probability of Profit (POP)
âś… Tip: The Short Straddle is a neutral strategy that works best when you expect very low volatility and expiry near the strike. However, risk is unlimited if the market moves sharply in either direction, so use only with strict margin and risk controls.
