Short Strangle Strategy: This can make you 100% profitable in the Sideways market, if your view is correct
Trade Execution:
✅Closed price of Nifty is 19664.
According to your view, if the market remains sideways for the next day,
you can sell Out of the Money (OTM) call option and Out of the Money (OTM) put option.
Points to remember:
1. The strike price you are selecting for selling call and put options must be major resistance and support respectively.
2. The probability of profit is more than 60% but if the market doesn't follow your prediction you will end up making an unlimited loss.
Let us understand this strategy with an example:
✅The closing price of Nifty is 19664
✅A major resistance at 19720-19750
✅A major support at 19600
✅ We will sell 19750 CE : Which means that the market will not go above 19750
✅Similarly we will sell 19600 PE: Which means that the market will trade above 19600
✅As you can see in Sensibull, if the market closes between above mentioned levels till expiry you will get a maximum profit of Rs 3218
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