BN option selling strategy


#1

Good morning, I have been paper testing BN options strategy for atleast 1 year now. I started trading with real capital in late Sep 2018 and here is a summary of my strategy (short strangle at 800-1000 points away from SPOT and adjustments according to market movements)

Close to 30% on a capital of 10L. Need expert advice on the following specific questions

  1. Am I lucky? Coz the BN did not see major movements like demo, brexit, surgical strike
  2. Is there a way to test options short selling on Streak? or any other platform
  3. Has someone tried backtesting with EOD data taken from NSE website
  4. I struggle at times with lot sizing, especially when the difference in premiums on CE and PE side are large

Many thanks in advance :pray::slightly_smiling_face:


#2

How many lots ? what is the strategy ? selling OTM put and OTM call ?


#3

Lot size - depends on the VIX value, spot, important events in near one week and day of week
strategy - I’ve mentioned in my post - yes, short strangle


#4

way OTM short strangles will give money in the end …
only thing we should avoid tricky days , cover if there are any events like rbi meet , budget etc …

invariably losses will be huge incase of black swan events that we cant avoid … one way is hedge it with even further OTMs , but this will eat your profits


#5

1.maybe yes, one movement like that Question your system’s risk management
2.I don’t think such kind exists in India
3.IDK
4.Sizing is what differentiate good traders t great ones. Keeping Delta neutral can be a start


#6

Options are not supported by streak. you can backtest futures and spot