{"id":222,"date":"2017-10-18T15:20:09","date_gmt":"2017-10-18T09:50:09","guid":{"rendered":"http:\/\/themenectar.com\/demo\/salient\/?p=110"},"modified":"2018-03-12T12:16:36","modified_gmt":"2018-03-12T06:46:36","slug":"theta-trade-2-making-money-with-banknifty-and-option-trades","status":"publish","type":"post","link":"https:\/\/unofficed.com\/theta\/theta-trade-2-making-money-with-banknifty-and-option-trades\/","title":{"rendered":"Theta Trade 2"},"content":{"rendered":"<p>This is the archive of the trades we have taken in theta on my trading<a href=\"http:\/\/unofficed.com\/chat\"> community&#8217;s #dr_theta channel.<\/a><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-6158\" src=\"https:\/\/unofficed.com\/wp-content\/uploads\/2017\/10\/download-8.png\" alt=\"BankNIFTY Theta decay\" width=\"880\" height=\"553\" \/><\/p>\n<p>This was a results season\u00a0and the\u00a0market was discounting positive news (Today NIFTY did not fall too despite NIFTY Bank cracked a lot. Reliance and other stocks kept the market up overall). Also, Axis Bank (whose results was due pre expiry night) was <strong><a href=\"http:\/\/www.moneycontrol.com\/news\/business\/earnings-business\/axis-bank-q2-profit-seen-up-307-slippages-from-watchlist-key-to-watch-2414153.html\">expected to post amazing profits<\/a><\/strong>; so I thought the support will hold at 24500.<\/p>\n<p><strong>Trade Setup<\/strong><\/p>\n<p>Here my trade setup for a 1.5L quant is &#8211;<\/p>\n<ul>\n<li><strong>Short BankNIFTY 18 Oct 24600 PE at <span style=\"color: #ff0000;\">117.7<\/span><\/strong><\/li>\n<li><strong>Short BankNIFTY 18 Oct 24700 CE at <span style=\"color: #ff0000;\">95.3<\/span><\/strong><\/li>\n<\/ul>\n<p>This is called Option Short Strangle Strategy. I use this on high implied volatility scenario when I am fixated on a range.<\/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\u00a0<strong><a href=\"https:\/\/unofficed.com\/options-calculator\/\">our Option calculator\u00a0<\/a><\/strong>to calculate your breakeven points in case you sell later. Calculate your margin needed using\u00a0<a href=\"https:\/\/zerodha.com\/brokerage-calculator\">Zerodha Brokerage Calculator<\/a>\u00a0or\u00a0<a href=\"https:\/\/upstox.com\/tools-and-calculators\/brokerage-calculator\/\">Upstox Brokerage Calculator<\/a>\u00a0and write there to calculate the maximum profit.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-6159\" src=\"https:\/\/unofficed.com\/wp-content\/uploads\/2017\/10\/download-9.png\" alt=\"trading BankNifty \" width=\"1349\" height=\"976\" \/><\/p>\n<p>I was betting the range in 24400 and 24900 which is a quite decent range.<\/p>\n<p><strong>Update:<\/strong><\/p>\n<blockquote><p>Due to the Axis bank&#8217;s positive news; I was thinking it may break the upper range to taste 24500 as NIFTY was sustaining the 10200 level strongly.<\/p><\/blockquote>\n<p>So yesterday<strong><span style=\"color: #ff0000;\"> I booked 24600 PE at 44.25 and shifted to 24700 PE at 71.<\/span><\/strong><\/p>\n<p><strong>Update:<\/strong><\/p>\n<p>Today is the expiry because Thursday its NSE holiday here. So I converted all to MIS and &#8211;<\/p>\n<ul>\n<li>Sell 24500 CE at 34.2<\/li>\n<li>Sell 24300 PE at 15.1<\/li>\n<\/ul>\n<p>BankNIFTY expired at 24313 making both of them 0.<\/p>\n<p><strong>P\/L this week:\u00a0<\/strong><\/p>\n<p>Sold 24600 PE at 117.7 and closed at 44.25 with a profit of 73.45 points<br \/>\nSold 24700 PE at 71 which expired at 355.1 with a loss of 284.1 points<br \/>\nSold 24700 CE at 95.3 and closed at 1.05 with a profit of 94.25 points<br \/>\nSold 24500 CE at 34.2 and closed at 6.4 with a profit of 27.8 points<br \/>\nSold 24300 PE at 15.1 which expired at 0 with a profit of 15.1 points<\/p>\n<p>Net Profit\/Loss = 73.45 &#8211; 284.1 + 94.25 + 27.8 + 15.1 = -73.5<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Making money with BankNIFTY and Option Trades. This is the archive of the trades we have taken in theta on my trading community&#8217;s #dr_theta channel.This was a results season\u00a0and the\u00a0market was discounting positive<\/p>\n","protected":false},"author":1,"featured_media":5945,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":{"0":"post-222","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\/222","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=222"}],"version-history":[{"count":3,"href":"https:\/\/unofficed.com\/theta\/wp-json\/wp\/v2\/posts\/222\/revisions"}],"predecessor-version":[{"id":5979,"href":"https:\/\/unofficed.com\/theta\/wp-json\/wp\/v2\/posts\/222\/revisions\/5979"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/unofficed.com\/theta\/wp-json\/wp\/v2\/media\/5945"}],"wp:attachment":[{"href":"https:\/\/unofficed.com\/theta\/wp-json\/wp\/v2\/media?parent=222"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/unofficed.com\/theta\/wp-json\/wp\/v2\/categories?post=222"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/unofficed.com\/theta\/wp-json\/wp\/v2\/tags?post=222"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}