{"id":219,"date":"2017-10-09T07:19:14","date_gmt":"2017-10-09T07:19:14","guid":{"rendered":"http:\/\/themenectar.com\/demo\/salient\/?p=82"},"modified":"2018-03-12T12:11:58","modified_gmt":"2018-03-12T06:41:58","slug":"theta-trade-1-making-money-with-banknifty-and-option-trades","status":"publish","type":"post","link":"https:\/\/unofficed.com\/theta\/theta-trade-1-making-money-with-banknifty-and-option-trades\/","title":{"rendered":"Theta Trade 1"},"content":{"rendered":"<p>From this week, I shall be writing my theta trades with rationale here as per suggestion of <strong><a href=\"http:\/\/unofficed.com\/chat\">my community members<\/a><\/strong>.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-6091\" src=\"https:\/\/unofficed.com\/wp-content\/uploads\/2017\/10\/download-93.png\" alt=\"Option Trading Strategy\" width=\"881\" height=\"514\" \/><\/p>\n<p>There is no significant market driver this time, so neither a fall nor a rise is expected. I am hence expecting BankNIFTY to hover around 24000 (which is a major support) and 24500 (which is a major short term resistance).<\/p>\n<p><strong>Trade Setup<\/strong><\/p>\n<p>Hence my trade setup for a 1.5L quant is &#8211;<\/p>\n<ul>\n<li><strong>Short BankNIFTY 12 Oct 24300 CE at <span style=\"color: #ff0000;\">87.75<\/span><\/strong><\/li>\n<li><strong>Short BankNIFTY 12 Oct 24300 PE at <span style=\"color: #ff0000;\">177.9<\/span><\/strong><\/li>\n<\/ul>\n<p>This is called Option Short Straddle Strategy. I<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"http:\/\/unofficed.com\/option-straddle-strategy-implied-volatility\/\"> use this mostly on high implied volatility scenarios<\/a><\/span> to get maximum premium like now. As the\u00a0market is in indecision; our IV is high giving hefty premiums for our theta to slaughter it.<\/p>\n<p><strong>Payoff Graph<\/strong><\/p>\n<p>If you have short, your price should be slightly different than mine because the market is always moving. Use <strong><a href=\"https:\/\/unofficed.com\/options-calculator\/\">our Option calculator <\/a><\/strong>to calculate your breakeven points in case you sell later. Calculate your margin needed using <a href=\"https:\/\/zerodha.com\/brokerage-calculator\">Zerodha Brokerage Calculator<\/a> or <a href=\"https:\/\/upstox.com\/tools-and-calculators\/brokerage-calculator\/\">Upstox Brokerage Calculator<\/a> and write there to calculate the maximum profit.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-6092 alignnone\" src=\"https:\/\/unofficed.com\/wp-content\/uploads\/2017\/10\/BankNifty-Options-Payoff-Graph.png\" alt=\"BankNifty Options Payoff Graph\" width=\"1366\" height=\"986\" \/><\/p>\n<blockquote><p>Our breakevens are\u00a024037 and 24562 which is a quite decent range with a maximum profit of 7.7% if BankNIFTY expires on 24300.<\/p><\/blockquote>\n<p>If you&#8217;re a newbie in options, read up on <strong><span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"http:\/\/unofficed.com\/how-to-trade-options-in-the-stock-market\/\">how to trade options in the stock market here<\/a><\/span><\/strong>. It will give you a comprehensive overview.<\/p>\n<p>Update: BankNIFTY ended at 24361.25 and this setup went to profit. Though BankNIFTY made quite a dance as usual and we did some more trades along with it. <span style=\"color: #ff0000;\"><strong>It was a profitable week.<\/strong><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Making money with BankNIFTY and Option Trades.From this week, I shall be writing my theta trades with rationale here as per suggestion of my community members.<\/p>\n","protected":false},"author":1,"featured_media":5914,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":{"0":"post-219","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-trade-setups"},"_links":{"self":[{"href":"https:\/\/unofficed.com\/theta\/wp-json\/wp\/v2\/posts\/219","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/unofficed.com\/theta\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/unofficed.com\/theta\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/unofficed.com\/theta\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/unofficed.com\/theta\/wp-json\/wp\/v2\/comments?post=219"}],"version-history":[{"count":3,"href":"https:\/\/unofficed.com\/theta\/wp-json\/wp\/v2\/posts\/219\/revisions"}],"predecessor-version":[{"id":5976,"href":"https:\/\/unofficed.com\/theta\/wp-json\/wp\/v2\/posts\/219\/revisions\/5976"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/unofficed.com\/theta\/wp-json\/wp\/v2\/media\/5914"}],"wp:attachment":[{"href":"https:\/\/unofficed.com\/theta\/wp-json\/wp\/v2\/media?parent=219"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/unofficed.com\/theta\/wp-json\/wp\/v2\/categories?post=219"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/unofficed.com\/theta\/wp-json\/wp\/v2\/tags?post=219"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}