Monthly Income using 16 Delta Short Strangle | Strangle Options S…

A strangle is an options strategy where the option trader holds a position in both a call option and a put option with different strike …

34 thoughts on “Monthly Income using 16 Delta Short Strangle | Strangle Options S…”

  1. thank you for the video! Could you please do a video explaining more in detail why you would sell strikes of deltas 3-4 instead of 16 when the VIX is high.

  2. Sir why dont you discuss about finnifty?

    It has expiry on tuesday..

    Do you trade on tuesdays expiry sir?

    If yes let us know.

  3. Please provide any guideline for risk management… what should be the stop loss? On position MTM basis or each leg have separate SL?

  4. Without sl we are going in huge loss…if we sl in mind 100 % and market fast movement in starting days our sl hit even not cross our breakeven point..overall the statergy is profitable ?

  5. That 16% chance of trade going wrong will take away all the profits and can even wipe off capital as this is not a hedged position. Don't suggest this kind of thing to beginners, they will end up with huge losses. Selling without adjustments or hedging is suicide.

  6. The explanation is good….but try backtesting it and unfortunately it goes into hot water especially around april 21,most of the 16D was breached easily…One would have to have lots of capital and be a pro trader to come out with minimal losses. To cut a long story short the market is supreme.

  7. Excellent way of true education. I can't thank you enough.. looking forward for more on this…

  8. The best illustration of a normal distribution curve I have seen. Very powerful when combined with an understanding of one standard deviation.

  9. this strategy is nothing new, already well known for regular option traders, one should notice that return on capital is very less

  10. please clarify these basic doubts , sir, 45 days to DTE means, spreads are heavy, difference between bid and ask is very high, then how to proceed, secondly, difference of theta of the selected strikes is very high, what is its impact on the outcome of the trade, please explain !!

  11. To increase probability of the trade , Can we short delta 10 on both side PUT and CALL, I am OK to have less profit and focusing on only 1 % of profit per week in weekly options, Can we short 10 delta CE and PE in weekly options, Also can we do this in banknifty and liquid stocks ,Awaiting your response 🙂 , Thanks for wondeful explanation!!

  12. After watching this video, I realised the importance of statistics which we studied during CA.
    Now I understood how to implement in real life.

  13. Do you know when nifty test that 16delta strikes, loss should wipe out – not only profit but entire capital.
    You looked at closing prices, but nifty can move there, scare and force trader to exit and come back. Notional loss of ten times profit can make any trader to book loss easily.
    People only look at profit but miss very important points. Hope somebody doesn't trade and make huge loss just looking at this video.
    Markets have been volatile and with new sebi rules it is double edged sword so be careful guys.

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