Thanks gemat,
This I think is good for index like nifty. Not stocks. Some stocks stay locked and stuck in a range for one full expiry and eat of all the premiums.
This I think is good for index like nifty. Not stocks. Some stocks stay locked and stuck in a range for one full expiry and eat of all the premiums.
one hedging strategy that worked for me. but the profit is very less. when you have 20-30 days to expiry and when market is less volatile, buy slightly OTM PE and CE at the same price. exit both when you achieve your targets. buy on a Monday and hold on to it till Friday. don't hold it over the weekends. theta decay and other factors reduces the premium. this method is challenging during high volatile months premium increases and premium decreases considerably when volatility cools off.