48700 and 52300 Strangle Bank Nifty 27 NovSell 48700 Put at 80 - 1 Lot, Sell 52300 Call at 30 x 2 Lots
This is 27 Nov Strangle for Bank Nifty, expecting both to go to zero, TnC for Naked sell apply.
Combined Premium expected 80+60 = 140.
Moderate Risk High Reward Trade. Do it if you understand adjustments else buy same side Far OTM legs
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.