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Showing posts from February, 2020

option trading call put balancing

Suppose we bought banknifty option long strangle before some big eventOr  After a long tight range. Bought 31500 call in INR 300 premium Bought 31000 put in INR 300 premium Total investment 600 points*lot size 20=INR 12000
We are ready here for any big movement either side. Now banknifty moved from 31200 to 31500 due to some positive trigger.
So call premium increased 300 to 520. Put premium reduced  300 to 120 only. Total is 520+120=640now.
I expect banknifty to go 32000-33000 from today 31500level in near future. But there will be profit booking after every upside move. So if there is a technical correction of 150-300 points only(0.5 to 1%)
What will happen? Call will reduce to 50-60% 520 to 230 Put will increase by 50-70% 130 to 200 Because now put has become far out of money. So total is 200+230=430 now. 210points less than previous day total.
We need to re balance the position. So sell that long strangle,both call put in 640. And buy a new combination with latest perspective. So there was a bull run in ban…

banknifty option capital & profit calculation

Banknifty option capital requirements20000 for buying call-put 1.2 lac for writing banknifty options
Selling every week- 100pt*4weeks=400pt 100 pt premium decay till Friday/monday 200pt* 3 big breakout=600pt 6 cyclical reversal =300pt Total  400+600+300=1300pt Profit in rupees- 1300*lot size 20=26000 Annually 26000*12=3lac+
What is must? Strict SL from open to close in option writing. Hedging with butterfly or spread for overnight position.
Exit in minor loss and keep buy at recent high or sell at recent low.
Buy NEW Banknifty super strategy course for future & option both. Pay online thru below link
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Right profit calculation for banknifty future & option trade

We have 22 trading days in a month.Midday breakout 3 days 0.3-1% profit 100-300pt 9days 0,1-0.2% profit 30-60pt 10 days -exit (loss of brokerage+tax)
Banknifty is 31000. So 1% is 310points. 0.1% is 31points.
Total expected - 700-900pt 3 days 300-500pt 9days - 100pt 10days =1100 points in 22days Means 50 per day. 50* lot size 20=1000 per day
We have 3 weekly breakout from 22 trading days in a month.
3 days 0.5-2% profit 150-600pt These 3 big moves may be average or very huge sometimes like given below. Total expected - 150pt+250pt +600pt =1000pt 3 breakout in a month. 1000* lot size 20=20000 in a month
Capital requirements 30-70k for 2 MIS orders. Futures Expected 20k+20k =40k
Two must be conditions to assure this profit- Order placing should be very regular.trader should not miss this for any single morning or afternoon. Try to exit cost to cost 10 out of 22days on false breakout.It will turn into mini loss whatever you will try. No one can have INR 1000 profit regularly.
So finally, We can have 40k per month me…

banknifty new video course (option/future) Doubt clearing for practicing traders

Which are most 2 important strategy for bankniftyMidday breakout (11.15-1.15pm)for daily trade Place trade daily from 1.15 to 1.25pm.
5 day hi/low strategy for big breakouts Place order from 9.25 to 3.30pm market close.
Stoploss shoud be 30 points if needed But we suggest to exit right then on false breakout. If option comes to it's cost price after showing a little profit then it is false breakout.
Use stoploss in case of real breakout. If banknifty gives profit more than 0.25% Within 2 minutes of trade. That is 80-90pt for banknifty. Then use 30pt stoploss. Trail it twice only & book total profit for once.
If you expect a very big move ahead and want to take more risk, keep SL buy at recent high made. Or reduce risk by changing instrument. Change from future to option. Change ATM call/put to far OTM call/put.