Hello Everyone,
I am gonna try this with small amount to see how it works. And people, any advice is welcome.
Most of the out-of-the money options expire worthless. Same goes for NIFTY. So what if I short a Strangle just before expiry.
For example, say NIFTY is trading at 5800 one week before expiry. So it's highly unlikely that NIFTY will go above 6300 or come down 5300. So if I short call option at strike 6300 and put at strike 5300. Most probably they will expire worthless giving profit for the entire premium.
Lets see.
I am gonna try this with small amount to see how it works. And people, any advice is welcome.
Most of the out-of-the money options expire worthless. Same goes for NIFTY. So what if I short a Strangle just before expiry.
For example, say NIFTY is trading at 5800 one week before expiry. So it's highly unlikely that NIFTY will go above 6300 or come down 5300. So if I short call option at strike 6300 and put at strike 5300. Most probably they will expire worthless giving profit for the entire premium.
Lets see.