Weekly Bank Nifty Options strategy

[Square]

Bank nifty options have been introduced since last few months and are very liquid. I haven't traded options strategies other than some speculative naked buying of calls or puts in nifty sometimes. But all those were purely lottery types of trades and were not something that I would like to do as an on going process. On this forum I have learnt that credit or debit spreads are good options strategies which will need no or little monitoring. Since the time value of options reduces drastically as the expiry nears, I think that implementing spreads strategies for weekly bank nifty options might work very well. I look forward for views, feedback and caution from expert options traders or traders trading in weekly bank nifty options.
Thanks.

 

[Square]

Mostly what I am looking is implementing some strategy like spread etc which will need no monitoring or eod or bod monitoring so working traders can trade without much botheration and try seek profit from their market view.

 

[Happy_Singh]

Mostly what I am looking is implementing some strategy like spread etc which will need no monitoring or eod or bod monitoring so working traders can trade without much botheration and try seek profit from their market view.

These is nothing like this . . .


FDs in some Nationalized bank is what may suit your expectations of need no monitoring . . . without botheration



Happy

 

[travi]

A recent member's experience, kindly go through it,
http://www.traderji.com/options/103323-option-selling.html

 

[Square]

These is nothing like this . . .


FDs in some Nationalized bank is what may suit your expectations of need no monitoring . . . without botheration



Happy

I didn't understand your point, in spread strategy profit and loss both are limited so how can one not trade spreads without botheration. I mean botheration means not to worry about unknown loss as well as unknown profit. Since both these things are known in credit or debit spreads one can trade without much monitoring too.

Since I am asking about weekly bank nifty option, I can have a strategy on the basis of weekly timeframe on weekly charts (Friday to Thursday) . Do you trade spreads or any such strategy with limited loss and limited profit? If yes then how do you trade in in the last week before expiry. Since most of the trades trade Nifty options, how do they trade in the last week, since time decay will be the most as the expiry nears.

 

[Square]

A recent member's experience, kindly go through it,
http://www.traderji.com/options/103323-option-selling.html

This thread is mostly about selling options for income, in spread strategy you are covering your downside too. Like for example of credit spread,
1. Sell Call 8000 and Buy Call 8100
2. Sell Put 8000 and Buy Put 7900.

And for debit spread,
1. Buy Call 8000 and Sell Call 8100
2. Buy Put 8100 and Sell Put 7900

So for weekly expiry bank nifty options on can extensively use credit spread with limited profit and limited loss.

 

[Happy_Singh]

This thread is mostly about selling options for income, in spread strategy you are covering your downside too. Like for example of credit spread,
1. Sell Call 8000 and Buy Call 8100
2. Sell Put 8000 and Buy Put 7900.

And for debit spread,
1. Buy Call 8000 and Sell Call 8100
2. Buy Put 8100 and Sell Put 7900

So for weekly expiry bank nifty options on can extensively use credit spread with limited profit and limited loss.

No harm in paper trading it for a while and you will find out . . .

Even if you are hedged the risk is limited, . . . its not zero

In the above cases of nifty options spreads that you have listed
you would be risking Aprox 70 points to gain 30 points . . .

So your win/loss should be more than 80% . . .
now here comes in a need for directional calls/choice . . .

No harm in trying for yourself, good for learning . . .

but it is Not a Fill it, Shut it, forget it Strategy
you will have to monitor and adjust (for the greeks) frequently


Happy

 

[vagar11]

I have shared some charts on premium decay in nifty.

http://www.traderji.com/options/103300-premium-decay-nifty.html#post1184379

 

[Rish]

This thread is mostly about selling options for income, in spread strategy you are covering your downside too. Like for example of credit spread,
1. Sell Call 8000 and Buy Call 8100
2. Sell Put 8000 and Buy Put 7900.

And for debit spread,
1. Buy Call 8000 and Sell Call 8100
2. Buy Put 8100 and Sell Put 7900

So for weekly expiry bank nifty options on can extensively use credit spread with limited profit and limited loss.

Nifty Monthly Expiry.......hence....volatility/capital risk is within your hand....

Bank Nifty....weekly Expiry......capital risk is high.....compare to Nifty...

Don't compare Nifty option Expiry with Bank Nifty Weekly Option Expiry..

 

[Square]

Anyone of you traded Bank nifty weekly options strategies? Not naked buying or selling options.