The market volatality is very high. How to adjust our option positions

Question and Answer – ForumCategory: strategyThe market volatality is very high. How to adjust our option positions
Raghu Staff asked 2 years ago
1 Answers
Raghu Staff answered 2 years ago

The current market is highly volatile. However, if you take sufficiently far off OTMs, the notional loss will be relatively lower. It is advised to write options at 2-3 SD positions away from SPOT. You can use this tool to identify the strikes – https://tools.niftybanknifty.com/banknifty-range-using-standard-deviation.php