Nifty - Planned risk strategy till FEB expiry

NSE:NIFTY   Nifty 50 Index
Hello All ,
What is Risk : Its something unknown and that causes trouble .
What if plan the risk i.e it becomes a known factor ? Will it become workable ? Correct , Right

Following is strategy till expiry

No Naked put /call buy /sell (Screaming it again,Options are expensive because of high volatility )

1) Buy 10500 MARCH Nifty put @205
2) Sell 10500 FEB Nifty put @ 110

scenario Nifty expiry
1) Expiry at 10500 march option loss max 25 point , feb expiry profit 100 point net profit 75 point
2) Expiry at 10400 march option profit 40-50 point , feb expiry 0 point net profit 40-50 point
3) Expiry at 10300 march option profit 120-130 point , feb expiry loss 100 point net profit 20-30 point
4) Expiry at 10200 march option profit 160-170 point , feb expiry loss 200 point - net loss 30 / 40 point

so we have planned risk of 30 / 40 points and not unlimited/unknown risk .

Take 1 or 2 lots depending on ur risk appetite , No over leverage and buy 10 lots,
You need minimum 2 lakh capital for 2 lots.

Consult your financial adviser before taking trade , options are risky

P.S :- 10300 look like strong support , breaking it will need some efforts next Month , Not this month.
Comment: looks Like 3 scenario in play , We are marking 5-6 points loss and thats the caluclated risk we took .
Best is to book out and stay aside, Looking for new opportunity
Trade closed manually: Exit folks , Exit.

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.