21-10-21 Bank Nifty - What a Move! And yet it made me sad!

NSE:BANKNIFTY   Nifty Bank Index

Trade Opportunity Date: 21-10-21

Yet another Missed Opportunity--

Bank Nifty at 39550+

Went long 39400 CE at 242 as it was an expiry day and did not want to make the mistake of trading an ATM CE.

SL hit at 185

Moved to Nifty 18000 CE as I have not traded Bank Nifty after it cleared 39000 and clearly the SL was an indication that my readings were not good as I had the opportunity to at least place SL at cost or just below the cost.

In between checked what happened to the 39400 CE.

Surprised to see it at 185! After making a low of 87!

The order window was opened by me but realized that the option had decayed to some extent. So suspecting a faster decay if Bank Nifty does not move for some time, i chose not to take the trade.

Nifty CE was already in green so chose to play safe.

My order would have been for 4 lots or 100 shares.

Usually, I don't trade this size but I was expecting a bounce-back as Nifty had been beaten down and that is what usually happens on such days especially when they happen to be the expiry days.

After some time I thought of checking where that CE is. I could do so as my Nifty trade was moving on well.

39400 CE was at 553!

A few minutes later 600!

EOD 632

Assuming I would have held on as I did in Nifty, I may have got 400 points or 100*400 = 40,000!

No regrets as I was not ready to take the risk and my Nifty trade was moving on well

But this has made my weekend work cut out for sure!

This is the potential of Bank Nifty and I will find a way in which I can be part of such moves in the time to come.

A few readers/viewers have asked me why I did not cover this huge move in my analysis. The reason is that I mainly analyze Nifty and Bank Nifty is a sub-set if it so it gets covered in any case.

How many of you were able to catch this move or like me missed the move?

I would love to read your feedback as always!

Best wishes for a brighter week which also happens to be the Monthly Expiry week!



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