I have been selling far-OTM strangles for the past 1-2 years now. If you write options that are sufficiently far away (2SD) from SPOT, there is nothing much to worry.
You can do one of these to reduce notional loss –
- Buy ATM options
- Buy/Sell futures so that it compensates you for the notional loss. However, this will work only if the number of sell lots (for options) are quite significant, say 1:5