The Below Strategy will be Helpful for Option Writers, We are using Historical Volatility of Index to predict the probable range of market in next 5 trading sessions.
We get this Range of Expiry day close and take position next day at Open.
We have 2 methodology where we have 70% Probability of Winning and 90% Probability of Winning.
As the Portability of Winning increase the returns also come down.
Always Keep SL 50% of premium you got. Suppose you get 50 point premium in Shorting both Call and Put So SL for this Trade should be Kept at 75 Points.
Below is the Range for NIFTY 19 Dec Expiry with 70% Probability of Winning
Traders can short 12100 CE and 11800 PE
Traders can short 12200 CE and 11700 PE
Below is the Range for Bank NIFTY 19 Dec Expiry with 70% Probability of Winning
Traders can short 32100 CE and 31200 PE
Below is the Range for 19 Dec Expiry with 90% Probability of Winning
Traders can short 32500 CE and 30800 PE
Be Strict with SL and maintain a proper Position size