Anybody tried short strangle in GOLD/SILVER?

Commodities
1

Hi All

Mostly I am trading index (NIFTY,SENSEX) and making short strangles in weekly position and then adjust. I was just observing gold and silver options selling and premiums look very rich even if we are ±10% .Has anybody tried selling short strangle in GOLD/SILVER monthly ?

If yes, can you please share your experience like how much win rate, adjustments etc ? It will be really useful

Sensibull doesnt allow drafts in MCX :frowning:

Thanks !

2

Yes, I’ve tried short strangles in Gold/Silver however ended up in losses. They can work well in range-bound markets, but the risk is much higher than indices.

Be extra cautious with war/geopolitical news, US data, Fed events, CPI/NFP, or any major unexpected event. Gold and Silver can make very sharp moves during such events, and adjustments can become difficult.

I prefer smaller positions, wider strikes, and predefined adjustment/stop-loss rules. Don’t focus only on win rate one big move can wipe out many small profits.

1 Like
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Thanks…how many months u tried…was it ±10% strangle ? how many losses and wins

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How was the liquidity in those options? Did you find any issues with liquidity when there were abrupt moves, or was it the same?

Is it like what happens in NIFTY 50 when there’s a 2-2.5% drawdown; suddenly, liquidity disappears. This happened during the start of the US-Iran war.

Compared to that, how was the liquidity in gold and silver options?

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Yea thats what a lot of liquidity issues, especially far OTM and too much spread.

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And near 30-40 delta, how was it? Also, in terms of rupee, what was the spread per lot?

A rough estimate would do. I don’t want the exact numbers, just a rough estimate to know if adjustments are possible in those situations or not.