Which options to sell with less risk. What is the range people are expecting for market
In this blog I am going to explain which options should we be selling as per what people are perceiving the market. It is generally observed that people sell out of money options. they will sell an out of Money call option and out of money put option. At these positions open interest increases. We are trying to leverage this data at which open interest values are higher. I have developed an algorithm which will suggest which are suitable options to buy or sell. This is a short strangle strategy where it suggests which options to buy or sell. This has more accuracy with Index options because of high liquidity. In stock options, we have less liquidity in Indian market and stocks are more volatile than index. Bets on stock options can go wrong.
How to use Open Interest options functionality at optionstrategy.co.in
1. Go to URL- optionstrategy.co.in and click on "My Stratgey" button.
2. Now select Index stock which you want to analyze and then select script name.
3. Now click on Open Interest options button at left side.
4. You can see calls and puts with their respective strike prices populated. These vakues are suggested based on open Interest in market. We generally go for 4-5 strike prices lower and check for open interest where it is maximum.
In this scenario it has suggested us to sell at strike price of 6600 and sell a put at strike price of 6200. The suggestion shown here is based on EOD prices.
Please ignore the valuation date as we are showing graph for multiple valuation dates.
In case you think this is not suitable, you can change strike prices and valuation date and click on My strategy button.
Note:- These strategies are just for illustrative purpose. Users are required to use their own judgement before entering in any strategy. We are not responsible for any loss.
Please email us your suggestions and feedback at info@optionstrategy.co.in
Happy Trading!!!!
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