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Whenever a stock or index is trading between support and resistance, it is called range-bound. There is no strong move in either direction. Prices tend to ping back and forth near old highs and then fall to prior lows. The range-bound movement usually occurs at the end of a large move as the bulls and the bears fight over the direction of the next move. You can identify and analyze such market conditions using a stock trading app.
And Exit or Hedge only when Break-Even (BE) of strategy hit (If upper level BE hit, with fall in the IV of call option and If lower BE hit with raise in IV of call option).
A Range-Bound market is a period of price consolidation where the price action experiences sideways movement. And their are many ways to identify range bound market. But out of above indicator, the best indicator is “Strike Options PCR OI and IV Skew”. Trader and investor are advised to do these complex option strategy after knowing their risk management through Derivative expert only.
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