Hey there guys, I am new to options.
So what I was thinking is that what if I sell out of the money contracts both of PE and CE on expiry day.
For example: If BN is at 28,000, then I will sell CE at 28,800 and PE at 22,200, which is a difference of 800 points.
And my positions will remain hedged because I have shorted both sides.
So if the market remains between 800 points (up or down) and my chosen contracts remain OTM, both will close at Rs1 or 0.something.
And I will be in a good profit.
The only downfall of this strategy is that my chosen strike price should not become ATM or ITM.
Do you guys think it is a good strategy? And is there any fault in this strategy?