Daily option selling calls
This is a page for option sellers in the Indian stock market.
For 18-Aug-2023
For 11-Aug-2023
Deploy only 50% of the capital
Bank nifty is mostly gonna expire in between 44500 and 45000 tomorrow.
Sell 44300 PE and 45300 CE with half of your capital.
If you want to avoid complete risk change it to 44200 PE and 45400 CE.
The strategy here is very simple.
We will execute the trade on the previous day of the expiry day. (Mostly short strangle or iron condor)
We will deploy only 50% of the capital to avoid the losses that can happen by the big gap on the next day.
If there isn't any huge gaps on the expiry day, we will let the trade expire without any adjustments.
If the expiry day is a trending day we will deploy the remaining capital on the winning side.
If the expiry day goes against our trade we will cut the losing side and deploy the full capital in the winning side.
The maximum loss we will afford is 3% of the capital. No matter what, we will exit the trade if the loss is more than 2%.
The maximum profit we will target per trade is .25% to 0.5%. 3 trades per week so the average profit will be 1% per week and the average expected monthly return is 3 to 4%.