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

Question and Answer – Forum › Category: strategy › The market volatality is very high. How to adjust our option positions
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Raghu Staff asked 4 years ago
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Raghu Staff answered 4 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