Comment on Basics on Options Shorting/Writing

Arun commented on 23 Jun 2016, 03:37 PM

Hi Nithin,

I choose to WRITE OTM Options at random around 600-800 points away, eg; if NIFTY SPOT is @ 8000, then i WRITE 8600 CE or 8800 CE of the Current Expiry and square off my position, when my target amount of profit is achieved. i repeat the same multiple times within an expiry. My success ratio is average and my returns are not consistent. What is the professional way to apply this strategy / choose the right strike price / how to apply a stop loss mechanism for the same. Do we need to apply technical analysis for adopting this strategy, if yes, how to go about it…..Kindly Clarify

Best Regards,
Arun
RI0285

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