New way of option writing. Please share your views ?

[tradersahab]

Recently I have got an idea of option writing on intraday basis which increases the probability of success overall and even if the view goes wrong, losses are less.
So let's bank nifty is at 30000 and 30000 is a resistence. Sell a naked call of 30500. If the prices dont break the resistence, enjoy the ride. If it breaks and sustains above, sell 29500 pe.
Now after this if prices move in either direction, we further gotta manage it. Not sure what we can do afterwards
Please guys share your view on this

 

[vishnux]

Its same old strategy , if price stays within a range , you get profit in option writing , if there is big momentum , you gotta firefight.

Also if it breaks 30500 , you will be in very huge loss , 29500 pe will become zero and ur profit will be limited.

 

[tradersahab]

Yes, obviously the strategy is the same, we after all want the price to remain the range, but this is only when the prices breaks the resistence. So we are first playing on price action and then wanting the price to remain rangebound

 

[Vijay349037]

This strategy helps only when the market is in side ways. If markets starts moving in one direction, we may end up in loss