nifty option strategy

i am new to traderji. all seniors i want to work on a strategy in nifty option by buying ATM call and put and sell 200 point far call and put 2 each. against one call i am selling two calls and against one put i am selling two puts. please help me weather this will be profitable or not. and if it will make loss than in which condition and profit in which condition. please help

That is called a Double ratio spread.

One long call atm and two calls otm short.
One long put atm and two puts otm short.

Uncapped risk and capped reward. Should be traded only when having good knowledge and a lot of experience in live option trading as we have to manage six legs.

Ratio spreads are used to lower the entry price as the sold legs bring in money. But as in India the exchange not takes in account hedged positions, the margin of Rp 100'000 is to be paid plus the amount for the long options. Now calculate how much you can win with this strategy and how much money is blocked for that amount. Some question arise?

Profit comes when volatility stays at the same level or declines and when the range of around 380 point is not broken. (Commissions and the long legs have to be taken in to the calculation)

Highest profit could be when market closes at 100 point up or down of the atm options at expiry and when volatility would immensely drop.

Good trading

DanPickUp