Selling ATM Straddles

Yeah, of course. Assuming the traded vol = realized vol and the hedge is optimal.

Prob of touch x payout.

When you find someone who can trade the perfect hedge, let me know.

 

How about hedgeless?

 

PoP under a passive buy and hold strategy? No, it doesn\'t change under depth of trials.

 

Thanks. I'm learning.......

 

PoP has nothing to do with expected return.

 

Your reward to risk odds are 1 to infinity. Why do I need to explain this? Trading 101 man, get with the program!

 

Is this correct? A short straddle has a higher probability of making a profit than a long straddle?

No, I am not thinking of writing naked straddles, but I am trying to learn about options & probability

 

You will lose a bit more on that strangle at infinity, risk-adjusted. Time for remedial trading 099.

 

The probability of making a profit is very different from the expected return.

 

Thanks Spin -- apparently he\'s not reading the thread in its entirety.