We will view the list of Option Strategies used for Option Selling, Also how one can make regular income by selling OTM Options

Option Selling follow the below rules

Create Trend lines for every script

Apply Greeks with proper Strike selection and defined targets

In Case of Strangle with hedging you can also buy ITM calls or Sell OTM of different Expiry

Adjustments in Call side still possible as compared to Put side

While doing Option Selling Quantity of any script is most important, avoid leverage for scripts

Strategies in Monthly to be taken

Risk Defined [Directional]

Bull Call , Bull Put

Bear Put , Bear Call

Risk Defined [Non - Directional]

Straddle Hedged

Strangle Hedged

Non-Risk Defined [Non-Directional]

Call - Ratio

Put - Ratio

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For Straddle or Strangle first step is Strike Selection based on 

Maximum Open Interest of Call or Put using Option Chain

Bearish View - Call Delta should be high, Bullish View Put Delta should be high

put premium higher than call premium for bullish view

call premium higher than put premium for bearish view

load strikes on icharts - combined charts of premium, it should be below vwap and 20 EMA-10 minute - SL on breakeven for making it Strangle Hedged

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For Straddle Rules

Only Monthly Straddle

VIX should be below 15

Low Volatile Stock or Index

To be Taken Minimum 1 month before

Exit one week before Monthly Expiry or When Premium Received is 50 Percent of Total Premium Receivable or When Return is above 5 percent

  Adjustment when difference between Call or Put premium is very high, take new Straddle at ATM

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Notes on Strangle [Option Selling - Far OTM]

Choose Stocks with 

High Liquidity, High IVP, Different Sectors

Prefer to  Exit in the 3rd Week of the Monthly Expiry 

Refer Opstra - Option Dashboard, Also In case of Stock Results Avoid OTM Strangle

Strangle Management

Delta Match, Matching the Delta if price shifts

Strange Adjustment till Straddle only [Make it Iron Fly]

Price Match, Matching the Price if price shifts

Strange Adjustment till Straddle only [Make it Iron Fly]

Put Side IV is always high as compared to Call Side IV

VIX goes high when the market is in downtrend

Check on Options Simulator on Opstra

Covered Call

Long Call of Next Month

Covered Call in High Dividend Stocks

Get Collateral by pledging stocks

Sell Current Week Call

Replace Future with ITM Call