Sideways movement in NIfty Now the Nifty Index is in consolidation mode after a strong bull run. Lucky for Option sellers indeed. ( Monthly Contracts)
1) We can execute Short Straddle near the All time High resistance or near to the immediate support at 17100 to 17000 (as per OI). Risky traders can go for Positional option buying (considering theta decay).
2)As its moving in a short range (350 points), it also a good option to use Short Strangle.
I would personally prefer the 1 st method, because there are chances that Support and Resistance levels get Breached.
Please share your valuable feedback
Disclaimer: Kindly do your own analysis and consult your advisor before taking any trade. This view is for educational purposes only.
Shortstraddle
NIFTY | Weekly expiry discussion | Short straddle / Iron FlyNIFTY | Weekly expiry discussion | Short straddle / Iron Fly
Quick fall and sharp recovery immediately, expecting some consolidation in this zone like it happened previously.
Can create a dynamic range bound statergy for tomorrow's expiry - limited risk. If market moves violantly we can do adjustment trade by going market direction and come out with no loss or with minimum profit.
CMP : 13520
Sell 13500 CE @ 82
Sell 13500 PE @ 59
Buy 13700 CE @ 9
Buy 13300 PE @ 15
Max Profit : 8558
Max Loss : 6368
Margin required : 60000/-
Just one day trade.
NIFTY | RSI mild negative divergence | Sideways?NIFTY | RSI mild negative divergence | Doesn't looks bullish not a great time to short too. Expecting some range bound this week.
Lets try Short straddle with hedge it becomes Iron Fly - 17/12/2020 Expiry - Credit Statergy - Defined and good risk reward
CMP : 13513
Sell 13500 PE @ 101
Sell 13500 CE @ 108
Buy 13300 PE @ 37
Buy 13700 CE @ 36
Premium collecting : Rs.209/-
Insurance : 73/-
Max Loss : Rs.4815/-
Max Profit : Rs.10110/-
1) No adjustment required if ready to accept this small loss of 4815/-
2) Margin required approx 62000/-
3) While exiting in between should exit from all the positions
Banknifty MAY expiry betExpecting banknifty to stay within the channel.
Trade 1: Short Straddle - Medium Risk
SELL 19000CE: 64.6 * 20 = 1292
SELL 16000PE: 47.3 * 20 = 946
Total profit = 2238 Rupees
Trade 2: Iron Condor - Ultra low Risk
SELL 16000PE: 47.3
BUY 15900PE: 41.45
SELL 19000CE: 64.6
BUY 19100CE: 55.85
Total Profit = 64.6 + 47.3 - 41.45 - 55.85 = 292 Rupees