Option Strategy 5

Let's start option selling learning. Strangle selling. ( I am

doing mostly in weekly Bank Nifty) When to sell? When VIX
is below 15 Assume spot is at 27500 Sell 27100 PE & 27900
CE say premium for both 50-50 If bank nifty will move in
narrow range u will get profit from both.
If bank nifty will go down Put premium will go up. Say 80.
Now book profit from call sell position and sell call option
equivalent to put premium rate. At this stage if BN will move
in narrow range you will get profit from both. Keep doing
adjustment as per move.
At one stage your strangle will become straddle with
adjustment. Straddle - same strike call and put Exit point at
straddle - exit when straddle combine premium is increased
by 15-20 points. Say 100-100 for call and put premium
If BN moving in one direction at one stage straddle total
premium will start increasing. Exit with max 15-20 points
loss only. Don't wait. Same way you can do with Nifty and
bank nifty monthly expiry.