Weekly Bank Nifty Options strategy

Hedging is a myth unless you are trading options.

Again strangle is a different ball game, do not get other strategies mixed up. In short strangle, the risk is unlimited, here I am exclusively stating that credit spreads, call or put only has to be played when trading bank nifty weekly options. In spreads, the risk is LIMITED. So when you say be cautious, means what, cautious about what? If you can elaborate further, since in credit spread, the risk and profit both are limited, the only focus is on getting the direction right on a weekly basis. So effectively if the direction of bank nifty movement is massively right on the very first day after taking credit spread is there than the profit begins immediately, if not then we have time till expiry or 5 days to get the direction in our favour. So anytime from day 1 to day 5 the direction or closing has to be in our favour or flat, in all the scenarios we gain. Only if the direction is opposite, small or massively we lose that limited amount, equalling difference between the strike price and credit of premium received.

Ok, Start na bhai, Paisa Kamo, there is no need to convince anyone else . . .

many will follow you if you start a dairy and log your real or even paper trades . . .

best :thumb:



Happy

Don't go theoriicly....paper trade 1-2 months you can understand whats& when the real practical problems comes...as per your credit spreads your trend bias is important

TRADING IN OPTIONS - MY CHANGE IN UNDERSTANDING COMPARED TO JUL-13.

One obvious thing which I may be overstated and overemphasized was the Credit Spreads. I was always for Credit Spreads because it worked very well in JUL-13 and which gave good Results in JUL-13, when the VOLT was FLAT and market was Going UP.

Credit Spreads do not work always. Basically one should not overlook the VOLT and its influence on Options. High VOLT will affect the Credit Spreads very badly.

So at the end of the Day we have to be find out whether to go for Debit Spreads or Credit Spreads. One might be confused whether to go for Debit Spread or Credit spread because it is not something to do with the Direction of the market but a function of VOLT.

So those who are Trading with Options, you should first have view of where the VIX or VOLT is heading and correspondingly Take the Credit or Debit Spreads.

Arey Bhai, I am asking feedback on credit spread strategy and people are giving me feedback on other strategies. I simply am asking if anyone has traded credit spread strategy for weekly bank nifty options or for last week expiry trading in Nifty, with intention of holding it till expiry, i.e. little or no monitoring.