{"id":6255,"date":"2018-10-05T21:33:20","date_gmt":"2018-10-05T16:03:20","guid":{"rendered":"https:\/\/unofficed.com\/theta\/?p=6255"},"modified":"2018-10-09T22:02:06","modified_gmt":"2018-10-09T16:32:06","slug":"bank-nifty-trading-idea-4th-oct-series","status":"publish","type":"post","link":"https:\/\/unofficed.com\/theta\/bank-nifty-trading-idea-4th-oct-series\/","title":{"rendered":"Bank NIFTY Trading Idea – 4th Oct Series"},"content":{"rendered":"

Bank nifty option trading strategies for 4th oct series.<\/p>\n

This week I had three different setups shared in Slack<\/a>. Let\u2019s elaborate.<\/p>\n

Strategy A: This is the strategy I teach in Theta<\/a>.<\/p>\n

\"bank<\/p>\n

Source<\/a>: You can see the proper rationale in the chart above<\/p>\n

Sell 24000 PE sold at 35.65
\nSell 26000 CE sold at 19.9<\/p>\n

This roughly made 2222 INR on 1.5L capital which is good considering there was no active intervention needed.<\/p>\n

Strategy B: This is what I am currently experimenting. Let’s tell you how I came up with this.<\/p>\n

    \n
  1. I wanted to have some profit which is troublesome considering SEBI\u2019s rip off on margins.<\/li>\n
  2. The market falling pretty badly and I can not exit the options without suffering huge damage which is time-consuming to recover.<\/li>\n<\/ol>\n

    \"\"<\/p>\n

    Payoff Graph<\/a>: If you do not understand options then you can check this link to visualize that how much profit it will make on which point.<\/p>\n

    The good part here is you are getting a huge sudden profit when things go wrong in your direction giving you ample time to change it and rebalance.<\/p>\n

    Today it happened. The market broke down and it hit huge profit.<\/p>\n

    \"intraday<\/p>\n

    Nearly 16K. You can also see next week\u2019s positions here too.<\/p>\n

    16K in 150K blow my wigs off. I didn\u2019t expect this. So in a trending market like this, you can always try this.<\/p>\n

    Remember the term trending or rangebound depends on the timeframe. BankNIFTY is rangebound between 24000\u201328000 but BankNIFTY is trending in 28000 to 25000.<\/p><\/blockquote>\n

    Hence, a range-bound strategy like strangle also works if you know how to and where to apply it.<\/p>\n

    Strategy C: Active firefighting. In this case, my view keeps changing hour to hour basis based on the chart and I actively monitor an account unless I\u2019m playing PUBG.<\/p>\n

    I share the trades live in Discord live<\/a>. But let me share the gist of the thought process that happened this week.<\/p>\n

    \"bank<\/p>\n

    I took same positions told above in 28th September, Friday which I closed on Monday and took this –<\/p>\n

    \"bank<\/p>\n

    I buy shares with the profit, so I bought the Infibeam with last week’s profit. Monday, The Market moved up and I attained my target on that options so I booked profit.<\/p>\n

    \"bank<\/p>\n

    And took a margin filler trade at 15:15 because I didn\u2019t have any view.<\/p>\n

    \"nse<\/p>\n

    Tuesday was closed.<\/p>\n

    Wednesday I took 25200 straddles and closed the above trade set.<\/p>\n

    \"bank<\/p>\n

    It again reached target due to volatility and hence closed the setup –<\/p>\n

    \"bank<\/p>\n

    But this time I did a mistake of selling 25000 PE because I didn’t anticipate huge downside movement that happened today.
    \n\"bank<\/p>\n

    Today morning 25000 PE opened with a huge loss but today was expiry so I had the benefit of intraday margin as everything expires today only.<\/p>\n

    So firefighting started to make the loss to green and closing it.<\/p>\n

    \"bank<\/p>\n

    Then, it ended in profit after a deep headache. A headache is because this setup is automated in tons of accounts.<\/p>\n

    It made around 7K on 150K.<\/p>\n

    Now you tell me, which one you liked. The third one was an amazing adrenalin ticket haha.<\/p>\n","protected":false},"excerpt":{"rendered":"

    This article explores our options trading idea on BankNIFTY options weekly series with a rationale and charts accounting proper bias to both fundamentals and technicals. <\/p>\n","protected":false},"author":1,"featured_media":6153,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[36,45,40,42,44,38,37,41,39,43],"class_list":{"0":"post-6255","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-trade-setups","8":"tag-bank-nifty","9":"tag-bank-nifty-call-put-price","10":"tag-bank-nifty-option-price","11":"tag-bank-nifty-option-tips","12":"tag-bank-nifty-option-trading-strategy","13":"tag-bank-nifty-options","14":"tag-bank-nifty-share-price","15":"tag-bank-nifty-tips","16":"tag-intraday-tips","17":"tag-nse-banknifty"},"_links":{"self":[{"href":"https:\/\/unofficed.com\/theta\/wp-json\/wp\/v2\/posts\/6255","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=6255"}],"version-history":[{"count":1,"href":"https:\/\/unofficed.com\/theta\/wp-json\/wp\/v2\/posts\/6255\/revisions"}],"predecessor-version":[{"id":6267,"href":"https:\/\/unofficed.com\/theta\/wp-json\/wp\/v2\/posts\/6255\/revisions\/6267"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/unofficed.com\/theta\/wp-json\/wp\/v2\/media\/6153"}],"wp:attachment":[{"href":"https:\/\/unofficed.com\/theta\/wp-json\/wp\/v2\/media?parent=6255"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/unofficed.com\/theta\/wp-json\/wp\/v2\/categories?post=6255"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/unofficed.com\/theta\/wp-json\/wp\/v2\/tags?post=6255"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}