Nifty Futures Trading

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arnav_rulz

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#18,817
#18,817
arnav_rulz said:
one can apply my favourite Option selling strategy right now...

those who think markets will not go below 2500 or go above 2900 this month(especially with only a few days left and soo many resistances and supports in the way..) can go for the following strategy.

Buy 50 2700 Call @ 70
sell 100 2800 call @ 30

Buy 50 2700 Put @ 70
Sell 100 2600 Put @ 35

Losses below 2500 and above 2900 close as on Expiry...

Pretty unusual to see such high premium with only a few days to expiry especially with a tight ranged market... Maybe The market is looking for a breakout ..

cheers
Click to expand...

We are already i profit from this strategy...

But should we just take this to expiry ? Well i don't do that.. Well say the market is looking bearish now... and with just a few days remaining what i usually do is..

We initially did this ..
Buy 50 2700 Call @ 70
sell 100 2800 call @ 30
Click to expand...
Right now 2700 call is @ 45 and 2800 Call is @ 12 therefore our total profit right now is 10 points. So if the market is looking somewhat weak and you think it wont close above 2720 then sell the 2700 call that you brought with a stop loss of 20 on 2800 call.(so that you get out @ break-even point even if nifty goes up..)

Keep your Puts both, brought and sold with you...
 
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