Posting this simple strangle strategy, which is mostly used by many traders and sold in seminars.
Again saying that there is nothing new and this is widely followed strategy. But, for someone it may be something new.
Mostly followed at expiry or 1 day prior to expiry.
Again saying that there is nothing new and this is widely followed strategy. But, for someone it may be something new.
Mostly followed at expiry or 1 day prior to expiry.
Strangle
Definition : sell otm call and put.
Version : there may be two versions but, 99% traders use premium based, and stratgey is widely used for expiry or 1 DTE, so, Here, I will cover premium based only.
Strategy : in morning, in nifty sell 10-10 rupee options both
Definition : sell otm call and put.
Version : there may be two versions but, 99% traders use premium based, and stratgey is widely used for expiry or 1 DTE, so, Here, I will cover premium based only.
Strategy : in morning, in nifty sell 10-10 rupee options both
Call and put. Place sl in both at 30.
Ab sidhi si baat se most probably both side sl nhi jaane waala. And if premiums crush in morning, u will simply make profit.
But, let say mkt goes up and call becomes 15 and put becomes 7. Now, what to do ??
Ab sidhi si baat se most probably both side sl nhi jaane waala. And if premiums crush in morning, u will simply make profit.
But, let say mkt goes up and call becomes 15 and put becomes 7. Now, what to do ??
The answer is simple. Do nothing with call. Book profit in put. And sell put of worth 15 premium with sl of 30.(in english ,it is rolling up puts). If let say call becomes 20, again repeat same adjustments.
If in case, call sl is hit, just ride put with sl(or trailing sl)
If in case, call sl is hit, just ride put with sl(or trailing sl)
At any point of time, put sl r also hit, then repeat this strategy from scratch. Ultimately, opshuns h. Theta aayenga. 3.30 baje jo bhi otm h sab 0 hoga.
Benefits :
1. No need to watch chart
2. No knowledge of greeks required
3. Hedges buy karke one can increase qty
Benefits :
1. No need to watch chart
2. No knowledge of greeks required
3. Hedges buy karke one can increase qty
4. This strategy has inherent features of trend following
So, even on trending expiries, u will make money.
5. In sideways, both sides premiums will melt. So, u will make profit also.
Only concern : sharp V Shape and U shape moves coming, your sl will be hit many times.
So, even on trending expiries, u will make money.
5. In sideways, both sides premiums will melt. So, u will make profit also.
Only concern : sharp V Shape and U shape moves coming, your sl will be hit many times.
The example here given is kind of illustration. Trader may strat with 5-5 rupee opshuns with 20 sl or 15-15 premiums with 50 sl.
Or in bnf,
One can start with 30-30 premiums with 75/90 sl.
Or in bnf,
One can start with 30-30 premiums with 75/90 sl.
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