MASTER THREAD on Short Strangles.

Curated the best tweets from the best traders who are exceptional at managing strangles.

• Positional Strangles
• Intraday Strangles
• Position Sizing
• How to do Adjustments
• Plenty of Examples
• When to avoid
• Exit Criteria

1. Let's start option selling learning.
Strangle selling. ( I am doing mostly in weekly Bank Nifty)
When to sell? When VIX is below 15
Assume spot is at 27500
Sell 27100 PE & 27900 CE
say premium for both 50-50
If bank nifty will move in narrow range u will get profit from both.

— Mitesh Patel (@Mitesh_Engr) February 10, 2019

Few are selling 20-25 Rs positional option selling course.
Nothing big deal in that.
For selling weekly option just identify last week low and high.
Now from that low and high keep 1-1.5% distance from strike.
And sell option on both side.
1/n

— Mitesh Patel (@Mitesh_Engr) November 3, 2019

Sold 29200 put and 30500 call
Used 20% capital@44 each

— Mitesh Patel (@Mitesh_Engr) April 12, 2019

Already giving more than 2% return in a week. Now I will prefer to sell 32500 call at 74 to make it strangle in equal ratio.

To all. This is free learning for you. How to play option to make consistent return.
Stay tuned and learn it here free of cost. https://t.co/7J7LC86oW0

— Mitesh Patel (@Mitesh_Engr) February 7, 2020

Avoid strangle selling tomorrow.
Better to sell on reversal candle only as premium very very low for option.

\u091c\u0928 \u0939\u093f\u0924 \u092e\u0947 \u091c\u093e\u0930\u0940\u0964

— Mitesh Patel (@Mitesh_Engr) December 23, 2020

Made 17K today. Carrying short strangle. pic.twitter.com/IFMN68qOaE

— Mitesh Patel (@Mitesh_Engr) November 20, 2020

I hv no idea about Greeks.
I watch trend and sell option accordingly. If market seems range bound then strangles as per hourly range.
If it's already in a range and bullish then will sell naked puts. Etc

— Bnf Addict (Gaurav Vashisth) (@_GauravVashisth) June 28, 2020

4. Avoid short strangles/straddles whenever market closes at day low/high as the probability of a big gap up/down is really high. https://t.co/hLhFPBNMI8

— Aditya Todmal (@AdityaTodmal) February 13, 2021

If you follow this things mentioned u will rarely face blackswan events while trading stock options.

One good advice if you are trading non-directional positional then strangle is always better then straddle (easy to adjust).

— Pathik (@Pathik_Trader) February 9, 2021

No need of any adjustments... Keep stops in strangle

Premium received+10% is stop

— Pathik (@Pathik_Trader) January 2, 2020

M&m

1. 750 pe sold at 11 (1st march)
Covered at 2

Sold 800 pe at 5
Stock started falling so converted into strangle by selling 900 ce at 5

Covered 900 ce at 2 & sold 870 ce at 5

Covered 870 ce at 6.55 & 800 pe at 2

Good gains overall

— Pathik (@Pathik_Trader) March 19, 2021

Sell strangles when \u23ec
1. Opening is in the middle of PDH/PDL.
2. Combined strangle chart at day low.
3. Below Vwap.
4. Below 20 MA. https://t.co/395faWrFmw

— Aditya Todmal (@AdityaTodmal) March 14, 2021

What is best way to sell strangle in Banknifty on an intraday basis
Simple
at 9:45 Open Option chain and check In which strike highest OI change in call side and put side

Sell both option with combine SL
Enjoy easy and simple intraday trading strategy
Today 35000CE and 34500PE pic.twitter.com/v2URWlWOBJ

— Jig's Patel (@jigspatel1988) May 25, 2021