Weekly bank nifty options have provided unique opportunities to trade as futures of bank nifty is still on monthly. I trade butterflies which signifies you would obtain call of one strike say as an example 23500 sell two calls of subsequent strike within this example 23600 and invest in one call of subsequent strike within this example 23700. The very best element of this strategy is your risk reward ratio is minimum 10 instances to 25 instances inside a single day and it takes place every single week. In my entire life span of 27 years of trading I've under no circumstances experienced this kind of threat reward ratio wherein your loss is also little say on great deal of bank nifty your worst case situation loss is 160 rupees to 360 rupees and result in maximum 24 hours or perhaps intra day. This strategy would yield benefits only on Wednesday closing time or Thursday intra day. Every single week it is happening which includes these days. The true catch is you should be open to losing the premium you paid. Get a lot more details about weekly options trading strategies
For freshers or people who can not find out path with the market place they can purchase one put butterfly and one get in touch with butterfly as marketplace would go either way up or down so your risk reward fairly woukd develop into one will be to 10 which signifies if even after in 10 weeks you hit ideal you happen to be in profit and you must commence with only ONE LOT in which even though you buy each get in touch with n put butterfly your maximum risk will be significantly less than 500 ?. When you get confidant you may raise the quantity and ideal component of weekly option is you've got next week to again trade just after learning from your errors.
No product ever in Indian industry has generated a lot response and no wonder it is actually the the single most product with maximum trading volume daily.
Aside from butterfly I trade box where we calculate the feasible range of bank nifty in one week and we are not concerned which side and would make profit so long as we could calculate range of bank nifty.
So we discussed 3 leg tactic butterfly and four leg approach box. Apart from this there is two leg technique. You could trade bull spread in which you get one contact and sell yet another contact using a higher strike and if market moves up you'd make profit irrespective that your price tag has come or not. Suppose you bought 26000 get in touch with and sold 26100call at existing market place price tag of say 25600, if market moves from 25600 to 25700 your deal would immediately come in profit although it's far off from your choice costs and also you can book profit by closing both the positions as when you continue maintaining position till expiry you could possibly find yourself losing your entire premium if marketplace closes under 26000 which includes a pretty higher probability given that it can be nevertheless 300 points away from existing marketplace price but threat reward ratio is 1:1 so it becomes more riskier in comparison to above two tactics. I am pretty threat averse particular person and my all trading tactics are with least achievable calculated danger with higher threat to reward ratio.
Identical way you may do bear spread in which you'd purchase a place and sell a place of reduce strike cost, If market place goes down you'd make money irrespective your price has reached or not supplied you close each the positions prior to expiry.
You will need not wait till closing to make profit in all above deals and you Will have to close the deal before closing time on thursday otherwise you might end up losing a substantial aspect of one's profit even though your price has come as well as your method proved to be 100% ideal due to differential treatment of security transaction tax on cash settled options wherein you'd be essential to spend stt on plus positions and wouldn't get credit of stt on sell position. By way of example in above scenario where in you had purchased a bull spread by getting 26000 call selection and promoting 26100 get in touch with solution and final expiry is more than 26100 suggests your max attainable profit circumstance has arrived, now when you close your each positions on your own and would get one hundred rupees but in the event you let it expire on its personal you would end up paying stt on 26000 Ce and your profit would drop by 30% on identical situation/ very same cost just as a consequence of stt.
Advantage of all these techniques is the fact that you will be not exposed to marketplace as you may have bought and you have sold precise quantity while unique strike, no impact of premium as you trade by paying premium and in the identical time by receiving premium so no effect even of time decay. For those who trade selling naked options there is certainly limitless danger associated with that and for those who invest in naked options you may loose due to time decay so in this case you will be paying and receiving both with calculated danger at all times irrespective you obtain premium or spend and also you are effectively conscious what best/ worst outcome of method.
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