How Range-Bound moves in market benefit option sellers

 1. What is Range-bound?

A market is range-bound when the price of an index (like Nifty) moves sideways within a specific "tunnel" or "range" rather than trending up or down.

• Example: If Nifty is at 22,500 and for the whole day it only fluctuates between 22,480 and 22,520, it is range-bound.
• Why it matters for Short Straddles: Since you sold both a Call and a Put at 22,500, you want the market to stay as close to that number as possible. If the market stays "bound" in a tight range, both the options you sold will lose value, and you keep the profit.