Short strangle option strategy in BankNIFTY: Short Strangles on BankNIFTY Weekly Options is my favourite. Execution doesn’t matter. What matters is the psychology and people or media that influence you.
That’s how an options strategy should be executed –
Strategy: Short Strangle Spread
View: Range bound Movement with bearish sentiment due to Trump’s Tariff and upcoming Corporate Earnings
Contract: 12th April 2018
Sell 1 lot 24000 PE at 35.55
Sell 1 lot 25200 CE at 54.20
Initial Credit: 89.75 (Spread to be executed in the range of 89-91)
Breakeven: 23910.25 – 25289.75
As per the below chart on the Daily timeframe of aforesaid scrip, we can see support at 24000 levels which are often getting broken towards 100 points only to come back at the support level.
We can see resistance at 25200 but we are adamant to keep the upper breakout with slightly more legroom considering price action breakout at these levels.
Chart Reference – Click here
Points To Note:
Effective Margin: 71,222 INR
Profit Percentage: 5.04%