WRITING TRADED OPTIONS for income

I must admit I was a bit confused by Profit's implication that the IV influences his weighting.

I've been looking at buying straddles on the ESX and selling a basket of straddles on individual stocks. I've chosen the best correlated stocks from the top ten (by weighting) sectors.

The stocks that I've chosen are: BLT, BP., SAB, AZN, BATS, RTR, BT.A, UU., LLOY, PRU.

I then choose the nearest ATM strike and work out the number of contracts based upon the following:

ESX ATM Strike x No of ESX Contracts x Sector Weighting / Stock Strike.

The sector weighting is adjusted based upon the universe of the top ten selected sectors, so that the total stock weighting is 100% and not 80%.

I intend to paper trade this for March, and haven't got a clue how it will turn out!