Selling short straddles is like printing free money convince me I'm wrong

[rohann09]

Hi, I have been selling straddles /strangles on weeklies for couple of years on retail and prop book.
Min overnight .idea is to keep delta neutral by adjusting the calls puts.max loss is always preset and you get out at that loss.
Most weeks you make money some weeks you get out with losses..it's more consistent than monthly options.
On days before expiry you have to keep an eye on vega too .
It's both an art and science.you need to see how current iv stacks against historical..volatility Regime..as in a whipsaw market you want to avoid too much gamma near atm

 

[Sampas]

When you sell straddle do you sell same deltas from both sides? What if sell call side based on premium received, not delta, so premium would be the same on both sides. Idea is, that you would be more hedged against crashes? Anyone tried it?

 

[destriero]

When you sell straddle do you sell same deltas from both sides? What if sell call side based on premium received, not delta, so premium would be the same on both sides. Idea is, that you would be more hedged against crashes? Anyone tried it?

DOOD.

The (same strike) deltas sum to 100. So if you're short an OTM 30-delta call then the same strike put carries a 70-delta. C'mon, man. Critical thinking applies.

 

[rohann09]

When you sell straddle do you sell same deltas from both sides? What if sell call side based on premium received, not delta, so premium would be the same on both sides. Idea is, that you would be more hedged against crashes? Anyone tried it?

I try to be as delta neutral as possible unless I have a strong reason to keep some delta open . Also you need to sell option at multiple strike to avoid having too much gamma around one strike
Some things you need to consider even if you are delta neutral a sudden downside move can increase iv and your vega losses can creep.
In the end you have to stick to stop loss and bite the bullet when things go bad .
It's not tough just stressful as you have to keep managing delta and a strong move can undo the last few hours of gain on expiry

 

[Sampas]

DOOD.

The (same strike) deltas sum to 100. So if you're short an OTM 30-delta call then the same strike put carries a 70-delta. C'mon, man. Critical thinking applies.

Sorry, of course I meant short strangles, not straddles (stupid Inglese, so many similar worlds ).