Nifty Bank IndexUpdated Bank Nifty 22 May Strangle
Looking at the current chart pattern and the index movement, a relatively safe strangle for 22 may is given
Sell 49000 Call at 13 and 47100 Put at 10.4 for a collective premium of 23.4.
This is a naked strangle and any sudden surge or gap openings can spike the option prices exponentially.
To make it safer one can buy the respective options closer to the sold ones , thereby it will have a defined loss and a defined profit.
I am taking this naked strangle with 2000 qty, and will do necessary adjustments if needed , by keeping sufficient margin in hand.
Sell 49000 Call at 13 and 47100 Put at 10.4 for a collective premium of 23.4.
This is a naked strangle and any sudden surge or gap openings can spike the option prices exponentially.
To make it safer one can buy the respective options closer to the sold ones , thereby it will have a defined loss and a defined profit.
I am taking this naked strangle with 2000 qty, and will do necessary adjustments if needed , by keeping sufficient margin in hand.
Note
Call from 13 to 8.5 and Put from 10.4 to 9.4, call decay / crash by 25% done already. Perfect setupTrade closed: target reached
100 % profit, both options Zero, even though market made a wild swing taking a lot of stop losses and causing many a heart beat faster, but such is the drama of expiry day, that is why its best to trade far OTM and cover the trades when decay is 90%.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.