Prem_Agrawal

Short Straddle + Short Strangle

NSE:NIFTY   Nifty 50 Index
Apply a combination of Straddle and Strangle in Nifty 50 for Tomorrow as a range based movement is going on in Nifty because of Nervousness amid Budget

Heavy Put OI is at 12350, 12300, 12200 Strike

Heavy Call OI is at 12400, 12500 Strike


Short Strangle :

Short PE of 12300 Strike

Delta = - 0.36

Premium = 38.1

Short CE of 12400 Strike

Delta = 0.39

Premium = 41.175


Short Straddle :

Short CE of 12350 Strike

Delta = 0.52

Premium = 63.65

Short PE of 12350 Strike

Delta = -0.48

Premium = 57.65


Net Delta : - 0.07

Net Premium : 200.575

Upper Breakeven is at 12473 Level

Lower Breakeven is at 12227 Level

Markets may face resistance between the range of 12389. 05 - 12355.5

Pivot Resistance is at 12365 Level

Bollinger Band , RSI is also going sideways

MACD's Histogram is at the same level as was on Previous day that is on 16 JAN

While applying this Strategy we are exposed to a huge risk so its better if we would add a strict stop loss which is this case I am applying at 1375.

Also just for some learning and fun, I have tried doing some calculations and I believe Nifty will close near 12335 Level, let us see then.



Happy Trading...
Trade closed manually: Reliance was the culprit which dragged the market much lower than our expectations,

12300 PE hit SL of 1375
12350 PE hit SL of 1375
12350 CE profit of 3442
12400 CE profit of 2329

Net Profit = 2329 + 3442 - 1375 - 1375 = 3021

Still, our overall position is in Green and that's good

Comments

Hi sir, is there any free website or software where i can see straddle and strangle charts of nifty and bnf?
+6 Reply
ravi1542 Prem_Agrawal
@Prem_Agrawal, thanks bro.
Reply