Hi . I m a bit new to option selling . Initially started with strangles and straddles but due to high volitality things don’t work out the way it seems to be . Can some one help with alternate strategy and adjustments and few major changes to be considered during option selling .
This spreads works in a directional trade sir .this is better than buying a naked call Option where your losses are controlled .
I m looking for a neutral strategy jus to take advantage on theta n decays .
See every retail prob is we dont know whether market will stay flat or directional. so If u go with neutral strategy like strangle prob comes when market take one direction, that time you need to change your strategy to the direction of the market. I shall suggest you an idea for strangle, you can try if you feel it is worth.
say If u have a capital to trade 8 Lots , create a strangle with 4 lots , and when the market takes direction add the remaining 4 lots to the one side which makes profit. profit will be less but other side losses will be limited.
or 2nd option is to convert the strangle to a bear call spread or bull put spread based on direction. You can always adjust your strategy based on market direction.