ⓘ Select an expiry โ From/To dates auto-fill to that week. Enter strike and hit Fetch. Today's data appears after ~6:30 PM once NSE publishes the archive.
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Actual LTPTheoretical Decay (constant IV anchor)IV chart below
โ ๏ธ
OPTION SELLING RISK DISCLAIMER
Theta decay strategies involve significant risk. Read before trading.
โ THE NAKED SELLING PROBLEM
Selling a naked call or put collects limited premium but carries theoretically unlimited loss. A single gap-up or gap-down event can wipe out months of premium collected in one session.
Example: You sell a NIFTY 24500 CE for โน80. A surprise event gaps NIFTY to 25,200 overnight. Your loss = โน700 ร lot size โ with no exit possible until market opens.
โ SAFER APPROACH โ IRON CONDOR
An Iron Condor sells both an OTM call spread and an OTM put spread simultaneously. Your maximum loss is capped at the spread width minus premium collected โ no matter how far the market moves.
BUY24700 CE(protection)
SELL24500 CE+ collect premium
SELL23700 PE+ collect premium
BUY23500 PE(protection)
Max Profit = Net premium collected
Max Loss = Spread width โ Net premium
๐ก๏ธ 6 RULES FOR SAFE THETA TRADING
1. Always Define Risk
Never sell naked. Use spreads (credit spread or Iron Condor) so your max loss is known before entry.
2. 50% Profit Rule
Exit when you've collected 50% of the max premium. Don't hold to expiry chasing the last โน10 โ gamma risk explodes in the final day.
3. 2ร Stop Loss
If premium doubles from your sell price, exit without hesitation. A โน100 sell โ exit at โน200. Protects against runaway moves.
4. Sell High IV
Only sell when IV is elevated (India VIX > 15 or IV rank > 40%). You collect richer premium that decays faster.
5. Position Sizing
Risk no more than 2โ3% of total capital per trade. One bad trade should never be account-threatening.
6. Avoid Event Risk
Don't hold short options over RBI policy, Budget, or earnings events. IV spikes and gap moves destroy short premium positions.
๐ Disclaimer: This tool is for educational and analytical purposes only. It does not constitute financial advice. Options trading involves substantial risk of loss and is not suitable for all investors. Past theta decay patterns do not guarantee future results. Always consult a SEBI-registered investment advisor before trading derivatives.