Option selling

Selling a weekly NIFTY OTM strangle: steady profits, uncapped risk

• Trading
• Passed 8 of 8 checks
• Risk: Extreme

Selling a weekly NIFTY call and put 600 points away made money in all 13 quarters we tested, about 15% a year on capital. But losses are uncapped: on election-results day in 2024 the position was down about ₹60,000 per lot within hours.

• Options
• Option selling
• Non-directional
• Strangle

8 Oct 2026 · 6 min read

Wrong costs, in either direction

A round-number cost assumption can be off by several times. Under-estimating costs flatters bad strategies; over-estimating them quietly kills good ones, and you never find out.

• Options
• Option selling
• Costs & execution
• costs
• slippage
• Strangle

7 Oct 2026 · 3 min read