By Vineet Kumar 
Short-side option strategies are widely used by experienced Nifty traders because they benefit from time decay (Theta) and volatility contraction. These strategies are designed for income generation and work best when the market remains range-bound.
In professional trading language, traders often refer to aggressive short option setups as the Dhurandhar Strategy—a powerful premium-selling approach that dominates sideways markets.
The Dhurandhar Strategy (ATM) is a non-directional short option strategy where both Call and Put options are sold at the same strike price and same expiry.
Market View
Market expected to stay sideways
Volatility expected to decline
How the Strategy Works
This strategy generates profits mainly through:
Rapid time decay
Fall in implied volatility
As long as Nifty trades within a narrow range, option premiums erode quickly, benefiting the seller.
Advantages
High premium collection
Fast Theta decay
Suitable for weekly expiries
Risks
Unlimited risk on both sides
Highly sensitive to trending markets
Requires strict risk management
Core Idea
Directional risk is reduced
Profit comes from time decay and volatility behavior
Positions are actively adjusted to maintain neutrality
Common Structures
Dhurandhar strategy with adjustments
Hedged Dhurandhar setup
Professional income structures such as Iron Fly or Iron Condor
Benefits
Reduced dependency on market direction
More stable income potential
Suitable for positional traders
Challenges
Requires active monitoring
Adjustment skills are essential
Sudden volatility expansion can hurt performance
Important Risk Management Rules
Avoid naked Dhurandhar strategies during strong trends
Trade only in stable or falling volatility environments
Define maximum acceptable loss before entry
Exit early if volatility expands unexpectedly
Prefer hedged structures for overnight positions
Conclusion
The Dhurandhar Strategy is a powerful short-side option selling approach for Nifty traders who focus on consistency rather than prediction.
ATM Dhurandhar Strategy delivers higher income with higher risk
OTM Dhurandhar Strategy offers better safety with moderate returns
Delta Neutral Dhurandhar Strategy is suitable for professional traders aiming for steady performance
In option selling, risk control is more important than premium collection.
FINAL PROFESSIONAL SUMMARY
Dhurandhar Strategy is NOT gambling.
It is a rule-based, probability-driven option selling system.
✔ Income-focused
✔ Direction-neutral
✔ Professional mindset required