This assumes you’re using all of your available margin for short premium. 
But 1% per month on overall capital is a realistic expectation. 
The danger comes from over-leveraging, i.e., trading too many contracts, even if they’re far OTM. 
Use VIX based position sizing
You may use these as non-directional strats depending on IV:
- Low IV: double calendar or double diagonal
- Medium: Iron condor
- High: Strangle
Personally I stick to strangles at 45-90 DTE as it’s easier to manage, targeting at least 5% return on margin used. 
Standard Tasty mechanics for management:
- Roll or manage at 21 DTE or 50% credit received, whichever comes first
- May consider closing out the whole trade if losses reach 200% credit received.
- Keep deltas in check by adjusting - this is more an art than something with hard rules.
On diversification:
- Tasty recommends diversifying among bonds, equities, commodities and currency.
- This is not really possible with the current Indian market conditions due to low/no liquidity or regulatory blocks (f.e. currency derivatives).
- When trading a single product, you can diversify among different DTEs. F.e. when trading only Nifty you can choose 30, 60, 90 DTEs and roll/manage the trade at the midpoint of the contract duration. This is not as good as real diversification among different asset classes but it should help!
