HOW TO DO SHORT STRANGLES TO MAKE 1% WEEKLY INCOME CONSISTENTLY?
I've made majority of my money by short strangles and I'll explain one very easy short strangle strategy which you guys can follow.
I'll also explain the adjustments and risk management.
1: What days it should be done?
It has to be done on Monday to thursday.
You can skip Fridays as there's negligible decay and big delta moves.
2: Preferred Instrument:
Banknifty will be the preferred instrument, since it's high risk and high reward.
Moreover it has good premiums.
3: Criteria:
It has to be done when Banknifty is inside a range on the 15 min chart.
As we can see here, it was June 6th Monday and Banknifty was in a perfect range, which makes it ideal for short strangles.
4: Positon sizing:
Although we'll hedge our positions but you strictly don't have to use the margin benefit which you will receive.
Ideal qty which be 6 lots on each side on a 10L rs capital and 3 lots on 5L capital