Sorry for n00b question but is there an index like sensex or Nifty that includes the sum total of the entire stock market?

Is Short strangle of deep OTM a good strategy for regular returns?

you usually take a naked short position in far OTM CE and PE right ?

i assume you keep a stop loss so that you dont run into unlimited loss. I also assume you understand when your stop loss will be hit i.e the value of the underlying or % increase in volatility that rises the premium.

So if you can derive the underlying value, why not create a long position that offsets for the SL hit value

eg: Nifty underlying is 17000

and you short 14000 PE at say Rs10 and you keep a SL of Rs3 (ie. 13 Rs strike price)
now for your SL to be hit, say the nifty should fall to 16500. then do a debit spread ie. buy 16500 PE, sell 16400 PE so that when your SL is hit – the equivalent value is offset by this spread.

If you are a serious trader you should know how to mathematically model to find these sweet spots.

cheers !

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