Get started

Expirysetup

Big Move? No Problem – Sell CE and Let Theta Work!Hello Traders! We’ve all seen those days when the market opens with a big gap-up or gives a strong rally – and most traders start panicking. But if you’ve been into option writing, you know that’s exactly when opportunity shows up. High IV + inflated premiums = perfect setup to sell Calls (CE) and let Theta (time decay) do all the work for you. Why this works so well after a big move: CEs become expensive: After a sharp rally, call options are overpriced. That’s your edge as a seller. Theta kicks in fast: If price starts to cool off or even just go sideways, the time decay starts eating the premium quickly. Price usually settles down: Markets don’t rally forever. After a big move, some pause or pullback is very common. You don’t need to be 100% right: Even if the price doesn’t fall, you still make money as long as it doesn’t fly through your strike. Some ground rules for this strategy: Sell Out-of-the-Money (OTM) Calls: Pick a strike that’s at least 1–2% away from current price with decent premium. Find nearby resistance: Sell near technical resistance zones where price usually slows down. Don’t sell into crashing IV: Make sure IV is still high. If it's already falling, your edge is gone. Always use a stop loss: Set a level where you'll exit if the trade goes against you. Never hold naked without a plan. Let’s Talk Real Example – Glenmark 2300 CE Sell Check the chart above 👆 Glenmark gave a huge 10% gap-up and rallied up to 20% intraday . That’s a crazy move – and we know what that means: CEs were loaded with premium . So around 11:15 AM (when the stock hit the top), we started selling the 2300 strike OTM CE . What happened next? Price went sideways. No breakout. But the premium kept falling hard. Even though price didn’t hit 2300, CE collapsed – pure Theta magic! Rahul’s Tip When premiums are juicy after a big move, you don’t need to do much. Just sell smart, manage your risk, and let Theta take care of the rest. Final Thoughts: CE selling isn’t about catching reversals. It’s about taking advantage of overpriced options and letting time work for you. So next time the market gives a big rally, don’t chase it. Just chill, sell smart, and let Theta kill the premium! Do you sell options after big moves too? Share your views or setups in comments!
NSE:GLENMARKEducation
by TraderRahulPal
2
PE Writing vs CE Writing – Core Difference Explained!Hello Traders! When it comes to Option Writing , many beginners jump into selling Calls (CE) and Puts (PE) without understanding the key differences. But PE Writing and CE Writing are not just two sides of the same coin — each comes with its own psychology, risk profile, and best-use scenario. Let’s break it down so you can write options like a pro. What is CE Writing (Call Writing)? Definition: Selling a Call Option (CE) means you're betting that the market will not go above a certain level by expiry. Bias: It’s a bearish to neutral strategy. You profit if the market falls or stays flat. Common Use Case: Ideal when the market is at resistance or when data shows strong supply zones or heavy CE OI buildup. Risk Profile: Unlimited loss if market rallies sharply — hence better when combined with hedging. What is PE Writing (Put Writing)? Definition: Selling a Put Option (PE) means you're betting that the market will not go below a certain level. Bias: It’s a bullish to neutral strategy. You profit if the market rises or remains sideways above the strike. Common Use Case: Works best when market is near support or when strong Put OI build-up suggests buyers are defending levels. Risk Profile: Unlimited loss if market crashes — especially dangerous during high-volatility or news-driven sessions. PE Writing vs CE Writing – Key Differences Sentiment: PE writing is bullish-biased, CE writing is bearish-biased. Market Structure: PE writers want market to stay above their strike, CE writers want market to stay below theirs. Risk Exposure: Both carry unlimited loss potential — proper SL and hedging are essential. Expiry Day Behavior: CE premiums fall faster in strong downtrends; PE premiums decay faster in rising markets. Rahul’s Tip Don’t blindly sell PE or CE just because premiums are high. Use data like OI shifts, support/resistance, VIX, and structure to choose the right side. Conclusion Both PE Writing and CE Writing are powerful tools — if you know when and how to use them. Writing without context is gambling; writing with structure is strategy. Always trade with risk defined, bias clear, and exit planned. Do you prefer PE or CE writing? Let me know your favorite setup in the comments!
NSE:NIFTYEducation
by TraderRahulPal