Whether things like put call ratio, world market and other factors affecting market are enough for option writing or we need some technical software for assistance also?
Everything is a needed information in options, but what really matters is how do you convert that information into important insights.
As far as Option trading is concerned,
“A Little Knowledge is a Dangerous Thing”.
so, the best advice one can give to an option trader is “Never do Naked Option writing”. If a trader is bullish, he/she may choose to short the nearest put. But a naked short put has ‘full risk’ on downside. so, the trader can just buy a lower strike put, and hedge the downside risk.
World Markets, PCR are some of the data required to assist the analysis.
The main thing required in naked option writing is how well you can analyse the technical levels in any Stock. For example, If TCS is trading at 2500 and your analysis says, that 2400 is a strong support level on charts which in most probability, shall be withstood as the RSI is also in oversold zone, and stock is also above 50 SMA. You may go ahead to short 2400 PE.
In addition to technical parameters, you can also view the bigger picture in support of your trade. Like : Global cues are also positive, IT sector as such is looking good.
You can not rely on global cues and PCR only. These data just give a glimpse of overall market picture.
Do you mean Bull Put spread in your example?