Option selling strategy thread 🧵
*Capital must be above 6lac
*Target only banknifty (weekly expiry)
* Target 1/2% per week
* combine premium should above 100
Two types of strategy normally i use
⚡Non directional (strangle)
⚡Direction - when banknifty & out of 5 major banking stocks 2 given breakout or breakdown.
(5 major banks 🏦 - #hdfcbank #icicibank #kotakbank #sbi #axisbank)
✨Breakout - when #banknifty gives breakout & 2/3 banks looking strong.
Then mark swing low of #banknifty & start selling 200 points down strike puts and add more at support line.
If swing support broken then exit.
✨Breakdown - when #banknifty gives breakdown range & (2/3 banks are weak or breakdown stage)
Mark it's swing high & start selling its 200 points above call .
If swing resistance broken then exit .
⚡Non directional (strangle) - when #banknifty and major banks all in range then mark their support & resistance zone.
Selling 200 points above calls of resistance zone & selling 200 points below puts of support zone.
When ever support & resistance break exit position .