What if Bank nifty option is sold 2000 points OTM on Monday to Wednesday ?
If you think banknifty won’t move 2000 points in 3 days then one can sell I guess but banknifty is capable of doing that move with less probability.
I mean intraday option selling on monday to Wednesday. Because time theta decay in intraday is most in these three days…
If you are selling an option contract on Monday and holding it to Wednesday, then it is not considered as intraday…
Now at the time of expiry if OTM options still remains OTM, then the contract expires worthless and you will get the premium as profit.
Yes i know holding position overnight is not intraday… I am saying doing intraday on these three day will be profitable on daily basis or not? Because on these three day the premium decay is at peak.
Yes you can unless and untill it will become ITM