Weekly Option Selling Banknifty

As can be seen from the lines in the chart, 20900 has been acting as support since last few weeks, Banknifty has touched it multiple times and reversed and on the upside resistance is at 23000.

Based on this view, 20800 PE and 23100 CE of 23rd can be sold.

Credit per lot will be 62 and 72 as of today closing but Monday opening the price will differ.

Total will be 134 points.
Estimated margin will be 92k and profit would be around 2.5k which is 2.6% almost.
If the view goes wrong we may need to adjust accordingly.

Hedge view will be as below. The risk is limited to 5k in this case.
Buy 20500 PE and Sell 20800 PE
Buy 23300 CE and Sell 23100 CE

Estimated margin is 34k and profit is 820 rs .
Although it may seem small, it is 3.5% of capital deployed.

Disclaimer: I am not a SEBI Registered Analyst. This is for educational purpose. Please take position after consulting your advisor.
Comment: can exit the pe and go up to 21500 pe sell with 21300/21200 pe buy


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.