What is short strangle? Why so famous?
Short strangle is very famous for nifty and secondly banknifty. It Involves selling options at two points at a distance from Spot Price.
How to select our selling strike price in our strangle?
1. Go for technical analysis and draw resistance/vah(value are high) and support/val(value are low)
Sell strikes at these support and resistance drawn.
2. Go for monthly chart and draw high and low, now draw last few weeks high and low. Now select points of support and resistance using the high and low’s
3. Option chain analysis to figure out the sellers perspective of … Read the rest