Lets learn BankNifty shorting in different way , here is strategy
Buy 27200 FEB-22nd Expiry banknifty call @ 490
sell 27100 FEB-01 i.e tomorrow Expiry banknifty call @ 300
Trade must be terminated tomorrow 1st FEB EOD , no carry forward
If Banknifty goes to 27400 , We will make small profit (50-70 points) in FEB 22 expiry calls while FEB1 expiry calls
will be no profit , no loss.
We are interested in short trade , so if expiry is at 27000 we will get 300 points in FEB1 calls and we will loose 120-150 points on FEB22 calls so net profit is 150+ points.
Banknifty drops to 26500 , 300 points gain FEB1 expiry and 350-400 points loss on 27200 FEB22 expiry calls
So net loss is 50-100 points
Folks the advantage is since 2 scenario we are in profit and 1 scenario is loss , so we have 66% chance of winning trade
Folks no naked put/call buy sell trade , BankNIfty moves 300 points.
No overleverage and blowing of account. Don't expect 10 lakh rupees profit in a day( Be realistic)
Consult your financial adviser before investing , options are risky
Tomorrow EOD scenario 2 can happen,
Just hold on, Stay put
we are losing 80 points on FEB 1 calls we are making 120 points on FEB 22 calls ,
So enjoy profits .
Don't be greedy , Book profits.
FEB1 call book at @ 155
FEB 22 call book @ 440.
Enjoy profits , Close the trade , EXIT , EXIT.
No carry forward of position , Book profits folks , Book out.