Whats the difference between manually setting up a call and put 0dte vs. doing a normal straddle. From my understanding, the difference is when you do regular straddle-it cost the price of 2 options so if it cost $300 you can lose $300, if the stock price doesnt move 3 dollars. But with a manual straddle- if they both cost 150 then it only has to move 1.50 then you make profit off the other option you only lose whatever the premium is for the call or put (whichever direction it goes the opposite in that loses money) with a poor man straddle. But with a normal straddle-you lose both premiums.
With a poor mans straddle couldn’t you (theoretically) set a fixed profit (say $1) and once either the put or call reaches $1 past the premium of one of the options (either call or put) sell. So now you only lose money from one of the options but ideally the price moves back toward the option you still have left and you’ll profit from both. Its usually a given that stocks like qqq and spy will move atleast $1 on any given day so it seems too good to be true.
Me and my friend have been debating this for a few weeks and we have shown some promising results with paper trading. Any input or advice is appreciated. If we cracked the straddle code-we never wanted to die.
