Rajandran R Creator of OpenAlgo - OpenSource Algo Trading framework for Indian Traders. Building GenAI Applications. Telecom Engineer turned Full-time Derivative Trader. Mostly Trading Nifty, Banknifty, High Liquid Stock Derivatives. Trading the Markets Since 2006 onwards. Using Market Profile and Orderflow for more than a decade. Designed and published 100+ open source trading systems on various trading tools. Strongly believe that market understanding and robust trading frameworks are the key to the trading success. Building Algo Platforms, Writing about Markets, Trading System Design, Market Sentiment, Trading Softwares & Trading Nuances since 2007 onwards. Author of Marketcalls.in

Nifty Options Short Strangle Strategy for March Option Expiry

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This Short Strangle option strategy is for medium risk takers who is bullish on nifty and those who believe that nifty will trade in a range between 5200-5900. If you are the one then you can sell 5300PE and 5800CE which is trading at the premium of Rs 103.70 and Rs 30.90. And Maximum Profit potential if nifty expires between 5300 and 5800. i.e Total Profit of (103.70+30.90)x50=Rs6,627.50.

Lower Break Even = 5167.47
Upper Break Even = 5932.55

Above Open interest chart shows that 5200PE has the highest open interest among the option series which indicates that put writers are on the mood that
5200 will act as a support zone for the current option series

Rajandran R Creator of OpenAlgo - OpenSource Algo Trading framework for Indian Traders. Building GenAI Applications. Telecom Engineer turned Full-time Derivative Trader. Mostly Trading Nifty, Banknifty, High Liquid Stock Derivatives. Trading the Markets Since 2006 onwards. Using Market Profile and Orderflow for more than a decade. Designed and published 100+ open source trading systems on various trading tools. Strongly believe that market understanding and robust trading frameworks are the key to the trading success. Building Algo Platforms, Writing about Markets, Trading System Design, Market Sentiment, Trading Softwares & Trading Nuances since 2007 onwards. Author of Marketcalls.in

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4 Replies to “Nifty Options Short Strangle Strategy for March Option Expiry”

  1. Hi friend,
    I think this is a very risky strategy . What happen if Nifty going below 5000, which is very likely I think as early as next week.

    Azad

  2. @Azad

    This strategy is only for those who belive that believe that nifty will trade in a range between 5200-5900. Yes it is a riskly strategy thats why i had mentioned medium risk. But currently 5200PE has higher open interest compared to other strike prices so chances of nifty test below 5200 is less as of now.

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