Option selling parameters checklist

 

Before filtering which stock we can apply option selling strategy, there are few parameters which can be checked to increase the probability for making a profitable trade 

option selling parameters checklist
	option chain data (stock)		macro analysis
	m cap		market trend - nifty
	curr price		sector trend
	stock high
	stock low		fundamental analysis (stock)
	support (option chain)		last Qtrly results
	resistance (option chain)		valuations
	max conjestion strik price (option chain)
	max movement (based on IV)		technical indicators (stock)
	PCR		ADX indicator
			Supertrend (20,2)
	technical (stock)		MACD
	support (chart)		RSI
	resistance (chart)		VWAP
	support (fibonacci retracement)		Bollinger Band
	resistance (fibonacci retracement)		Bollinger Width
	trend (chart) past 10-15 days action
	weekly trend (chart)

Based on the trend we can apply one of the below mentioned strategy

stock	strategy 1	strategy 2	strategy 3
sideways	short straddle (hedged)
sideways less risk	short strangle (hedged)
slightly bullish	call spread	sell hedged put
slightly bearish	put spread	sell hedged call
bullish	sell hedged put	buy call	call spread
bearish	sell hedged call	buy put	put spread