BankNIFTY Theta focuses on different negatively skewed option selling strategies to trade on the time decay i.e. theta of BankNIFTY weekly options exclusively.
- Capital Requirement – Varies on trade to trade.
- Trading Rationale – Varies!
- Risk – Varies! Mostly, the downside will be open towards unlimited drawdown! You’re advised to keep your own rational stop loss which is 10% of the employed capital on the whole setup. (e.g. If the setup is consisting of two trades, your stop loss is recommended to have at 10% of the employed capital consumed for two trades.)
If you trade is inspired by our trade setups, please share on Twitter with a tag #bankniftytheta as a friendly wave to our initiative!
Quant Based Approach –
The quant-based approach means trading with a fixed margin which is called Quant. It allows us to monitor trades with proper risk management. We have two systems dealing with NIFTY options so far.
The recommended capital for the single lot system is 65K and double lot system is 150K. (Assuming BankNIFTY lot takes 50K for selling, keeping 20K as a buffer for stop loss.
Upstox Leverage Quant –
30K Quant is a special setup for Upstox customers under our sub brokerage which has trade setups on Thursday only. Upstox gives us huge leverage for intraday trading in BankNIFTY expiry! To get the trade setups we do in Thursday, you need to have an upstox account under our sub-brokerage.
Just use 103436 as referral code while signing up in Upstox, you will be mapped to our sub brokerage. Use THETA450 code to get 450 INR off in your brokerage!