Trade Nifty Options Intra Day Using Hedging Principle

Dear All,

I am starting this new thread considering there are many viewers who want to trade options on intra day basis rather than
Carry Forward basis.

PreConditions for Nifty Options Intra Day:
1. You must have access for Low Borkerage account having brokerage including all taxes on one position
(irrespective of lot size) should not be more than Rs30.
2. Postions need to be taken during middle of Trading session to gain time decay factor in
last 1.5 hour of trading session.
3. Max Profit Potential when you play intra day will be nearly 15 points
4. Max Lox Potential when you play intra day will be nearly 10 Points
5. All positions need to square off by 3:20 PM ~ 3:27 PM market time
6. To gain good returns minimum 5 lots recommended E.g: 50*5*15 = Rs3750 - Rs120 brokerage = Rs 3630
7. All positions will be hedged, there won't be any speculation considering market can go any way round any time
8. Minimum investment required Rs 35000 ~ Rs 45000 to take 1 hedge position
9. Need to have continous watch on trade terminal during 12:00 PM to 3:30 PM market hours.

Next time when any Intra Day strategy builds during market hours, I will update this thread.

Thanks
Ankur

Intraday Update:

To maximize returns, following method can be adopted

6200 PUT SELL 89 Price (5 Lot)
6300 CALL SELL 64 Price (5 Lot)

Calculate 10% levels as below:
89+9 = 98
64+6 = 70

Make your first sell positions near levels of 98 and 70. Once any order gets hit,
wait for levels to back to either 89 or 64.
After that make sell position in other side.
This way you will surely come under profits in last 30 minutes of market close.

This Strategy I called it as "Dragon" and way ahead than Option Writers style of trading markets.

Reason for choosing today's trade as below:

We have maximum writing stands today at 6200 Put and 6300 Calls level.
Since as an trader for me writer is more important than buyer when I trade options, so I have decided to be with them and I too go as an Writer for both levels in today's trade.

Probably If anyone applied Dragon, popularly called as Short Strangle then profits would have doubled from 6 points to 12 points.

But I have considered only 6 points while calculating profits as getting Dragon for anyone was not an easy task and even skillful options Intraday traders sometimes unable to catch the same and they too settle with points captured near to 153-155 levels in trade like today's.

This is the practical Intra day example of Options Trade and many options traders come in market only to play same type trades everyday.

Hope it will work for everyone!!!

But don't consider this as 100% right as success rate of writers are around 85~90% in market and other times its buyers that win! But never the less some times small fish too capture the big fish in pond

Reason for choosing today's trade as below:

We have maximum writing stands today at 6200 Put and 6300 Calls level.
Since as an trader for me writer is more important than buyer when I trade options, so I have decided to be with them and I too go as an Writer for both levels in today's trade.

Probably If anyone applied Dragon, popularly called as Short Strangle then profits would have doubled from 6 points to 12 points.

But I have considered only 6 points while calculating profits as getting Dragon for anyone was not an easy task and even skillful options Intraday traders sometimes unable to catch the same and they too settle with points captured near to 153-155 levels in trade like today's.

This is the practical Intra day example of Options Trade and many options traders come in market only to play same type trades everyday.

Hope it will work for everyone!!!

But don't consider this as 100% right as success rate of writers are around 85~90% in market and other times its buyers that win! But never the less some times small fish too capture the big fish in pond

If we enter this strategy when the VIX is low and exit near EOD when the VIX is higher, chances are that we will lose. My question is, does intraday change in VIX affect the result of such trade substantially?