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Test Trade - Long Straddle on Bajaj Auto

69
Earnings to be out today. Intrinsic value breakevens are marked in red, with theoretical intrinsic strategy breakeven in black thick lines.

If the price moves above or below the upper or lower black line respectively, the Long Straddle is in profit.

I was inclined to take the trade but the premium was far too heavy, with October options expiring tomorrow and November being too high in theta value. Considering playing this on October, will put an update if I end up taking the trade.
Note
The breakeven zone is reduced to this if I buy the October options today - but if no breakout occurs, I'll lose a significant amount of money.

Not taking the trade.

snapshot
Note
This play did lose out. Good call on not taking the trade.

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