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 ) Tu