Why traders sell at multiple option strike price

Trading
1

i see big investers share trade book which shows . their PE / CE in continues strike prices.
for examp . if nifty is at 17000. i see their book shows 17000, 17200, 17300, 17400 etc. at CE side and same in downside . what is logic. and how do they adjustment when spot moving to 17200 . will they close 17000, 17200 position and buy 17500,17600 CE

2

They employ risk management tools to minimize losses and maximize gains. Some of the trades at different strikes are also taken for margin benefits.

Assuming, you are talking about option sellers. Yes, they do adjustments by closing out positions where maximum gain is already made and shift to higher levels to grab more premium at lower risk taking the benefit of theta decay (time value decay)

4 Likes
3

thank you

4

and most of those guys posting stuff on twitter are snake oil salesmen trying to sell you their course.