Instead of naked option selling, you add protection on both sides. Example: Nifty at 25,000 Sell: • 25,300 CE @ ₹100 • 24,700 PE @ ₹100 Buy: • 25,500 CE @ ₹35 • 24,500 PE @ ₹35 Net credit = ₹130 So: Max profit = ₹130 × lot size Wing width = 200 points Max loss = 200 - 130 = 70 points × lot size That's the main advantage... your maximum loss is defined. If Nifty stays between the short strikes, time decay can work in your favour. Breakevens: 24,570 and 25,430 For a delta-neutral setup, the overall position delta should be close to zero at entry. But don't mistake that for zero risk. A sharp move can quickly change delta because of Gamma, so the position still needs monitoring and adjustment. Also, this setup with same-expiry protective wings is essentially an Iron Condor. Premium collection is the easy part. Managing the trade when Nifty starts moving is the real challenge. Example is only for understanding. Actual premiums, margin and risk will change with market conditions.

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