BankNifty PUTs & CALLs

[vagar11]

Suppose, I do a short straddle or short strangle 2 days before expiry of Weekly BNF options. In your experience, how much move by bank nifty will put us in a loss?

 

[Blackhole]

 

[Blackhole]

Suppose, I do a short straddle or short strangle 2 days before expiry of Weekly BNF options. In your experience, how much move by bank nifty will put us in a loss?

As everybody know, selling options has unlimited risk ...so that rule applies...while earning on it is limited to premiums received that too not hundred percent.....


selling strange / straddle works on more no of days remaining for the expiration of the contract as main reason is time decay, that decays faster towards the expiry.

although technically sold position are used as hedge and kept for long time with some adjustments.

when employed ur capital on such trade for las days is very risky strong stoploss is advised.

if u have recieved 200 as premium and ur rule says u will cut off the trade as soon as premium rises to 260, please do it. In case ur trade is profitable and ur rule says to book the profit in 25% or 50% of premium ...please do it...do not wait for entire premium to be eroded. If ur comfortable to play till breakeven points, u can do that as well.

Its just ur trading management style......theoratically straddle or strangle break evens are total premum received - lower strike price and upper break even is premium received + upper strike price...

in case of straddle say bnf 17900 strad premium rec is 200)

lower BE is 17900 -200 = 17700
Upper Be is 17900 +200= 18100

range increase during the start of series as premium received is more depending on vix,IV....it can be even above 1000...so be gives u big range.


Selling options can be very tricky ...please learn all the aspects.

thanks

 

[Blackhole]

 

[Blackhole]

 

[columbus]

Hi Blackhole,

As per your data the last date of EXPIRY is 23 ,but it is 30.Another 5 days of
data needs to be incorporated.Last series was also like that.

 

[Blackhole]

Hi Blackhole,

As per your data the last date of EXPIRY is 23 ,but it is 30.Another 5 days of
data needs to be incorporated.Last series was also like that.

yeah its my mistake i forgot to add days to it...i will do it....last series i was virtually our of market for over 10 days(personal issue)....u might see me always online as my system is always on and data pref etched into browser.

 

[Blackhole]

Expiry day (BNF Weekly)

OI DATA atfer 30 of Opening

Max Pain : 17500 and HUge activity in 17500 Straddle(highest intraday change of Open interest till now)

 

[Blackhole]

 

[Blackhole]