We’ll explore the top 7 option-selling strategies on the NSE (National Stock Exchange) that could help traders target up to 10% monthly returns per Month on their capital. Option selling is an advanced strategy that can generate consistent income, but it’s important to balance high rewards with the right risk management. Whether you are new to options or an experienced trader, this guide will provide an overview of each strategy, rated based on its risk, reward, and suitability for achieving your financial goals.
1. Define What Option Selling Is
If you want to understand the fundamentals of option selling, check out our detailed guide on Option Selling on NSE where we explain what it is and how it works.
2. Explain Its Advantages
Learn about earning premiums and managing risk with spreads. For a full breakdown, refer to the guide here.
3. Why Option Selling is Popular on the NSE
To see why option selling is so popular on the NSE, check out our insights in this article.
Top 7 NSE Option Selling Strategies on NSE
| Strategy | Risk Level | Profit Potential | Ideal Market Conditions | Rating (out of 10) |
|---|---|---|---|---|
| Iron Condor | Low | Moderate | Range-bound | ⭐⭐⭐⭐⭐⭐⭐ (7/10) |
| Bull Put Spread | Low | High | Bullish | ⭐⭐⭐⭐⭐⭐⭐⭐ (8/10) |
| Bear Call Spread | Low | High | Bearish | ⭐⭐⭐⭐⭐⭐⭐ (7/10) |
| Short Strangle | High | Very High | Low Volatility | ⭐⭐⭐⭐⭐⭐⭐⭐⭐ (9/10) |
| Short Straddle | High | High | Neutral | ⭐⭐⭐⭐⭐⭐⭐⭐ (8/10) |
| Covered Call | Low | Low | Bullish/Flat | ⭐⭐⭐⭐⭐⭐ (6/10) |
| Naked Call/Put | High | Very High | High Volatility | ⭐⭐⭐⭐⭐⭐⭐⭐⭐ (9/10) |
Comprehensive List of Options Selling Strategies
Find out which Strategies are to maximize your returns and minimize your risks with our comprehensive options selling strategies list.
Conclusion
In conclusion, option selling strategies can be highly profitable, but they come with different levels of risk. If your goal is to earn 10% monthly returns, strategies like Short Strangle and Naked Call/Put have the highest profit potential but require solid risk management. On the other hand, conservative strategies like Iron Condor and Bull Put Spread provide more stable returns with limited downside risk, making them suitable for traders seeking steady income.
Choosing the right strategy depends on your risk tolerance, market outlook, and capital management.