BANK NIFTY TRADE PLAN (WEEKLY OPTIONS): 27 JUL 20 ONWARDS

Nifty Bank IndexNSE

Description

⋅ Jul 25, 2020 8:51 AM

BANK NIFTY WEEKLY OPTION STRATERY

TRADE PLAN

Sell
22000(CE+PE):-2
23500(CE+PE):-2

Buy
21600 PE: +1
22200 CE: +1
23300 PE: +1
23900 CE: +1

Net credit 446
Max Profit 6187
Max Loss 3814
Break Even 21753,23747
Margin Required 1.01 L approx.
POP 69%
ROI 1.18%

Comments

parthsaluja125

⋅ Jul 25, 2020 2:45 PM

what is the name of this strategy ?

DhirajSinghBais

⋅ Jul 25, 2020 3:04 PM

@parthsaluja125, its double broken wing butterfly....

vinieg

⋅ Jul 26, 2020 6:58 AM

May I know if these to be done at the same time and when to square off positions?

New so not clear...

DhirajSinghBais

⋅ Jul 26, 2020 7:20 AM

@vinieg, all legs to be executed at the same time, holding till expiry.........

vinieg

⋅ Jul 26, 2020 11:12 AM

@DhirajSinghBais, thank you.. Just a query, I observed that premium is adjusted and reduced so to expiry there are chances that premium goes to zero.. Not sure how to manage that...

vinieg

⋅ Jul 26, 2020 11:13 AM

@DhirajSinghBais, what about daily buy and then sell?

DhirajSinghBais

⋅ Jul 26, 2020 11:20 AM

@vinieg, all goes to zero & u just walk away with the credit received.........

freakedmind

⋅ Jul 25, 2020 4:10 PM

Complex strategy with a fair amount of margin reqd, but very good Risk to reward ratio!