Path to Consistency

IV has shot up with todays mkt moves.
For BN 20-APR Expiry, good value to sell the 21500PE and 22200CE.
This is a short strangle, since IV is around 20%, 16%
there are no long legs to hedge Vega.

bhai ,strangle is slight OTM call put only na ? say this far strikes ?

Slight is a very relative term, BN is pretty volatile so 300 pts either side falls in slight

Anyway, being so far gives you a very high winning probability.
That's 31pts per pair-lot, working out strategy for ROCE vs Risk %
Around 1% return for 3 days position.

EDIT: The % return is a big range, bcos of margin required for positions, this one is on the higher side.
You could even get 1.7%.

Ravi bro , we are getting pe premium if bnf rise , but total premium
received would be 31 pts very low and would be in risk if touches 22200 from here ? as bnf 1-2 % rise in single day possible ? hedging is safe ? or considering TA wouldnt cross ?

Expiry is in two days. Max pain concept is applied to this.
Low premium credit also means low risk.
Most failed trades occur ATM.

The expanded IV have now imploded and combined price is around 25pts.
so my terminal has a 6pt gain already

bhai, abhi samje BN kya hotha hai

Sorry not understood bahi , pls tell me in english

Yest you were saying why so far deep strikes, so I'm just saying that this is what BN is
I mean its volatility.