Multileg Short Straddle – An Option Trading Strategy

Market outlook of multileg short straddle strategy:
The strategy is the best choice when the market is expected to move in a range-bound scenario. The market is expected to be low volatile to get the best out of this strategy. The best scenario is the absence of significant movement in the underlying asset price. There is a belief in the trader's mind that the asset's price will not experience significant movement.

What is the best time to use the Multi Leg Short Straddle:
When the trader expects the low volatile market.

When the price is going to move in a narrow range.

Setting up a multi leg short straddle:
In order to set up a multi leg short straddle option strategy, traders need to find a perfect option contract from the options chain table. In the next step, choose the best strike price and expiry for both the call and put option contract. And lastly, sell both of them against the premium, which will be your profit.