Premium Eating Strategy - BankNifty Weekly Options
- Thread starter mycall
- Start date
WoooW... what a pull up at the fag end... sure have surprised many... caught many on the wrong foot... very very rare on an expiry day...
something cooking for sure... NF was kicking high... BNF was not following... today its showed its colour and proved many of us wrong...
I was lucky to get out with I guess a minor hit... lucky because I was planning to enter next trade and for that I needed margin... so I had to exit... it turned out to be hell of a lucky exit
something cooking for sure... NF was kicking high... BNF was not following... today its showed its colour and proved many of us wrong...
I was lucky to get out with I guess a minor hit... lucky because I was planning to enter next trade and for that I needed margin... so I had to exit... it turned out to be hell of a lucky exit
Directional Trade using Conservative Strategy
I am a superconservative trader. I always look for protecting/saving investment while earning considerable return (in my view though) from the investments. I never go for big returns from the market. Tried those a lot during earlier years. My experience says that we, specially retail traders with 1-2-3lacs can't compete with big guns... who are out there to make a killing. Today's last few minutes surely gave most traders some hard experience.
This strategy is about how I see a directional trade through my conservative viewpoint.
Directional trade means when I find some price point, from which, price is expected to travel either side significantly. This prince point can be a major S/R level or a candlestick setup/pattern or a EMA break or through any western indicator.
Simple Entry
Employ Credit Spread (CS) at the ATM opposite side option of the movement. Means if price is to go up CS to be taken at ATM PE side. Credit points will be anywhere between 40-50.
If trade is in favor profit booking can be done anytime preferable or can see the expiry. Aggressive traders can ride the trend by trailing the CS when next resistance level is broken. Pros already know how to ride trends.
S/L is when price hits the buy strike of the CS. At this point max loss will be about 8-10 pts.
Complex Entry
Employ CS as explained in the simple entry. Add another CS at the ATM+-200 or 300 strike at the direction of the movement (opposite side of the previous CS). Means if the ATM CS is in PE... this CS should be in CE. Credit point of this CS will be about 20-22.
If trade is in favor... hold hold the trades until price hits the second CS's buy strike. ATM CS can be trailed to increase profit.
If trade fails exit ATM CS when price hits it's buy strike, and keep holding the opposite strike CS.
This is exclusively Directional Trade. Not for neutral market. This is for conservative traders like me. I like to take it easy on health... just kidding
Paper Trade this strategy for a few times and then decide. Trade at your own risk.
Correct chart reading or finding right direction is important. It will not harm much if caught in wrong foot though.
I am a superconservative trader. I always look for protecting/saving investment while earning considerable return (in my view though) from the investments. I never go for big returns from the market. Tried those a lot during earlier years. My experience says that we, specially retail traders with 1-2-3lacs can't compete with big guns... who are out there to make a killing. Today's last few minutes surely gave most traders some hard experience.
This strategy is about how I see a directional trade through my conservative viewpoint.
Directional trade means when I find some price point, from which, price is expected to travel either side significantly. This prince point can be a major S/R level or a candlestick setup/pattern or a EMA break or through any western indicator.
Simple Entry
Employ Credit Spread (CS) at the ATM opposite side option of the movement. Means if price is to go up CS to be taken at ATM PE side. Credit points will be anywhere between 40-50.
If trade is in favor profit booking can be done anytime preferable or can see the expiry. Aggressive traders can ride the trend by trailing the CS when next resistance level is broken. Pros already know how to ride trends.
S/L is when price hits the buy strike of the CS. At this point max loss will be about 8-10 pts.
Complex Entry
Employ CS as explained in the simple entry. Add another CS at the ATM+-200 or 300 strike at the direction of the movement (opposite side of the previous CS). Means if the ATM CS is in PE... this CS should be in CE. Credit point of this CS will be about 20-22.
If trade is in favor... hold hold the trades until price hits the second CS's buy strike. ATM CS can be trailed to increase profit.
If trade fails exit ATM CS when price hits it's buy strike, and keep holding the opposite strike CS.
This is exclusively Directional Trade. Not for neutral market. This is for conservative traders like me. I like to take it easy on health... just kidding
Paper Trade this strategy for a few times and then decide. Trade at your own risk.
Correct chart reading or finding right direction is important. It will not harm much if caught in wrong foot though.
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