Option sell strategy

[Nilesh@T]

Hello i am new in trading
I have an idea about option trading could it work or not
e.g we sell nifty 600 CE and nifty 500 PE (currently nifty trading at 8660) because if we observe each day one of the option falling more than other at least 10 rs difference is there


is this strategy will work please help me

 

[Nifty2830]

Hello i am new in trading
I have an idea about option trading could it work or not
e.g we sell nifty 600 CE and nifty 500 PE (currently nifty trading at 8660) because if we observe each day one of the option falling more than other at least 10 rs difference is there


is this strategy will work please help me

You are new, learn c3+f2 5 yrs,then enter in option.Otherwise it will be suicide.

 

[anal_]

Selling an itm call and buying otm put will give you lot of downside delta, which is correct if you're betting on market fall. And when the market falls, the otm put will get itm giving you higher premium, which comes from long gamma. But shorting an itm call is going to drill a big hole in your pocket. You'll be paying full contract amount plus go into assignment risk. Paying more will bring down your roi. Instead short an otm call, but again, your position is unhedged and risky. Draw a payoff and see.