23 October Bank Nifty Strangle with ButSell 53500 @ 12 x 3 Lots
and
50500@48 x 1 Lot
Buy 50000 Put at 29
Total Premium 54 can be collected.
Expecting all of the above to go to zero, This is semi covered so please use SL
Strangleoptionsstrategy
28 Aug 2024Bank Nifty Far OTM strangle - low premium, low returnSell 53000 CE for 9.9 and 48700 PE for 11 for a collective premium of 20.
New traders can try this, this is a naked call Live or on Paper to understand time decay and volatility.
Please note this is a naked call with limited and defined max profit, and unlimited loss possibility. To make it safer one can hedge, however since this is such a low premium, hedging will not be of much use and will reduce the profit considerably. Rather put a defined SL as per your risk appetite , safer rule of thumb is when one leg becomes double, square it off and wait for the other to decay completely, to be noted is that even that is not fool proof as a whiplash can cause loss both sides.
