I want to sell call&put at same strike price for every month. If stock price @800 then sell 800ce&pe & hold till expiry. Is this right or wrong, pls suggest

General
2

it depends… how stock price move… if stock shows big upmove or down move… than i think you will earn profit…

but if stock trades in a particular range… i think you loose… because your premium is eroded…

for eg;- let say you purchase 800ce/pe of any particular stock… you get 800 CE at 40 rs… and 800 PE at 38…

than your breakeven point is 878 (strike price = 800 premium=40 +38)

and second breakeven point is 722 (strike price = 800 premium=40 +38)

so, if stock trades above 878 or trades below 722… than you will start earning profit…

but if stock trades in this particular range… than you will end up with loss… because you premium is eroded…

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3

It is Very Risky. You are Talking about Selling of Both " PUT " & " CALL " right ?

If something good or bad news came for that stock assume Price moved 200 /- from 800 /- either side you will be in huge loss.

As per me this type of strategies when considering " Option Selling " You may get 9 times profit out of 10 times but that last time Loss may be wipe off all these Profit.