Trading strategy index option ( NIFTY & BANK NIFTY )

Theta  benefits’    Weekly Trades

(Theta is a measure of the rate of decline in the value of an option due to the passage of time. It can also be referred to as an option's time decay. ... Theta is generally expressed as a negative number and can be thought of as the amount by which an option's value will decline every day )

NIFTY   options                         

Suppose a nifty feature is 11800 

OTM - CE   12100   Strike price -   20 /- Rs    max P&L is    1500 /-Rs 

Your SL will be  30 /- Rs  max  40/- Rs  ( 10 points or Max  20points )

CE  live screenshot

OTM -PE    11400  Strike price  -     20 /- Rs 

Sell  OTM -  PE   11400   Strike price -   20 /- Rs    max P&L is    1500 /-Rs 

your Stop the loss will be  30 /- Rs  max  40/- Rs  ( 10 points or Max  20points ) Amount from your

Sell price is 10 points  upside 750/- Rs SL or Max 20  points 1450/- Rs

Max P& L is 1400/- Rs per lot

Trade days Monday / Tuesday/ Wednesday / Thursday

More preferable   ( 3 days )  Tuesday/ Wednesday / Thursday

 

Exit if Sl hit   exit time will be 3.15 Square off both sides

End the dayTrade 16 Days  -  a month make a note pad  for this  Trade P&L   a proven profit strategy which

 implement  for Return

We have to trade this for theta  benefit  time decay

 

Bank Nifty  options 

suppose  trading at  25000  feature

 

Sell   OTM call Bank nifty   live   bank nifty UP premium  is negative 

For example, you sell on  40  /- Rs  lot size is   25 so   40x25= 1000 Rs    keep Stop loss  40 upside

that means 80/- Rs  wait till 3.15  Square off time  exit if still loss hit that means loss is max 

1000/-Rs  and benefit is max 1000/-Rs per lot if it went 0 /- INR 

follow These 3 days with SL  3 days a week

Sell   OTM call  Bank nifty   live   bank nifty UP premium  is negative 

For example, you sell on  40  /- Rs  lot size is   25 so   40x25= 1000 Rs    keep Stop loss  40 upside

that means 80/- Rs  wait till 3.15  Square off time  exit if stop  loss hit that means loss is max 

1000/-Rs  and benefit is max 1000/-Rs per lot if it went 0 /- INR 

you can see now bank nifty is  trading on the negative side but the premium is still negative

live Example in below image 

Example just how to take trade one pager 

 

SO we can make benefits’  from both sides

Do not  hold one side  do both side trade so you can earn without taking any risk

we must exit if  SL ( stop loss )  Hit  any offside

this strategy

This Strategy Makes money   only OTM  CALL  & PUT

some small ROI ( Return on investment ) can turn big if you trade with discipline 

always make position 400 points minimum  in Nifty  to handle  extreme volatility

you can guess by watching  VIX ( VIX, is a real-time market index that represents the market's expectation of 30-day forward-looking volatility )

 

Hemant pagi 

9898559842