Dear TJ members,
I want to start a discussion on naked strangles on weekly bank nifty.
Here are my thoughts:
Strategy:
Sell ATM next weekly expiry bank nifty call and put options on Friday and cover it on Monday. That's it...
Care to avoid event days like elections etc....if open gap up and looks like a momentum cover in the morning elese cover EOD. One can easily pocket 30 to 50 bnf points. Hit ratio is around 75%.
Simple back test yielded good results.
I know seniors will say: never sell naked, but this strategy makes money. Require a low margin broker. Very good ROE for a days work.
Views invited.
Sent from my AO5510 using Tapatalk
I want to start a discussion on naked strangles on weekly bank nifty.
Here are my thoughts:
Strategy:
Sell ATM next weekly expiry bank nifty call and put options on Friday and cover it on Monday. That's it...
Care to avoid event days like elections etc....if open gap up and looks like a momentum cover in the morning elese cover EOD. One can easily pocket 30 to 50 bnf points. Hit ratio is around 75%.
Simple back test yielded good results.
I know seniors will say: never sell naked, but this strategy makes money. Require a low margin broker. Very good ROE for a days work.
Views invited.
Sent from my AO5510 using Tapatalk
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