Short Strangle: The Safer Cousin
Like Straddle, but with specific breathing room. Perfect for high IV days.
The Setup
- Sell OTM Call (e.g., 22,200 CE).
- Sell OTM Put (e.g., 21,800 PE).
Why Strangle over Straddle?
Higher Probability
Market has to move A LOT to hit your OTM strikes. You have a wider safety net.
Lower Profit
Since you are selling cheap OTM options, the premium received is lower than ATM Straddle.
When to deploy?
Monday Nights: To eat Tuesday morning decay.
Result Events: Sell far OTM strikes to profit from IV Crush.
*Disclaimer: NSE/BSE frequently revise Lot Sizes and Expiry Days (e.g., SEBI Circulars 2024/2025). Always check the latest circular on nseindia.com before trading.
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