ITM Call & Put Writing Strategies...

hi i m new in option writing...my friend is said that we can earn almost risk free money by writing ITM Call & Put..suppose nifty cmp is 5000, he told me to write ITM 4500 call & ITM 5500 put..so my break even point range are b/w 4500 to 5500 (minus total time value)...is this technic risk free??..can i trade like this in option for safe & continuous income... ??

yes.... rsk is less in this strategy but one thing shud consider that very less premium to eat in deep itm options .

While this is definitely a low risk strategy but would stuck quite some money IMO. My friend is trading using a strategy which is almost opposite to what you've posted above. Check my post here... http://www.traderji.com/options/38877-short-selling-faroff-options.html

thaks rajsumi...can u give me any another risk free or low risk strategy in option trading..??

thanks prasham:thumb:

@ Vinay: An almost similar strategy but with lower risk is using Credit Spreads. Learn more about Bull Put Credit Spreads & Bear Call Credit Spreads. They are simple enough to be understood by novice traders like us.