ASHWINIKUMAR2101

HOW TO TRADE IN RANGE BOUND MARKET

Education
NSE:NIFTY   Nifty 50 Index


Every week we got one or two days
where there is no momentum and market trade in a Range.
this is best scenario for option selling.
sell CE option on top Using nearest resistance as
SL. Then Hedge position with selling PE near Support.
you will make money in all scenario ,if market remains
in a range , breakout or Breakdown.

1 . RANGE BOUND MARKET :- you will get benefit from premium cutting.

2. break out :- if nifty gives Range breakout and sustain , in that scenario , we Exit from CE , and carry out PE position
using Trail SL.

3. Break down :- if nifty confirm Breakdown , same thing exit from PE call an d carry with CE.

Hope I can answer your question .if you have any doubt plz message me.

Thanks

PS :- option selling is Risky .Test your setup and practice on paper and then take trade.

Comments

I'm a bit new to trading so can you answer my questions?

So Let's say Nifty is at 15046 (At first resistance) -> Buy PE call and sell CE call , And at what range should SL be placed (Above 15114?)

This is just for knowledge purpose, I'll not be trading just learning.
Reply
ASHWINIKUMAR2101 SachinDubey1
@SachinDubey1, no 15046 near you sell 15200 ce And buy 15300 CE or you sell 15200 ce @ 15040 then wait for range bottom and sell 14800 pe @ 14950.
range break out or break down exit from respective CE or PE ...
Like today I exit from 14800 PE and carry 15200 CE.
Reply
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