Hi anml, it's a very delicate art writing options. You have to be an active trader to do it. The whole point is that the delta should be neutral in your position at every price change in the index. This Wednesday banknifty rose around 500 pts but it didn't do it in one go. It took it's time throughout the day which allowed me to keep selling puts against my calls. Also the premiums were very high. It wasn't the case when recapitalization news came. But then again that week started with low premiums which wasn't worth selling and volatility was too high. I only carry my positions forward in profit but that week didn't allow me to do that. Hope this information helps you.
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