Banknifty SureShot Intraday Strategy without any analysis

#62
Hi,

I tested this strategy myself and it is working perfect for me.
This strategy works in every market conditions like Upside, downside or sideways.
No carry forward, No technical/fundamental Analysis, Less margin in intraday


Best time to take position At 09:30 -10 AM:
But you can take position at any time in the day. You will surely make profit.

Sell current week
ITM/ATM Call
ITM/ATM Put

On wednesday/thursday sell next week CALL & Put

At the same time draw a straight line at the Banknifty future Chart at the current price

If banknifty future is below that line sell Banknifty future
If banknifty future is above that line Buy Future

Keep the positions opened till market close and keep your future stoploss at line.

Exit future trade position as soon as price cross the line in opposite direction. And place another order as per future price direction from the line

There are chances that you have to take multiple orders in future if sideways.
But this amount will be covered by your option selling in sideways.

You will make big if trade is in any one side of your line.

We are not going to make money from future here. We will take benefit of option selling. Future is for hedge only.

Let me know your views
what if buy call and put instead of selling?
 
#64
Why has this thread been inactive. I am going to try the strategy. It appears good. Is there an issue with it? Please let us know if there is a problem
Unlike gambling on stocks, futures or on naked options - it's a good neutral strategy! :rofl:

However, like everything else, it also has a drawback - Implied Volatility (IV) is a friend and a foe at the same time.

By default, a strangle or straddle will neutralize Mr. Delta's anger.....

So, if one buys a strangle/straddle and IV increases, Lady Vega will make money for you but if IV subsides or decreases she will unleash her wrath. Here, Mr. Theta is against the buyer at all times.

Similarly, if one sells a strangle/straddle and IV decreases, Lady Vega will generously pay but if IV increases she will again unleash her wrath. Here, Mr. Theta is with the seller at all times.

Thus, it is incorrect to say - without analysis - the strategy is a SureShot win-win unless you are looking for a bumpy ride!

If you find any Volatility edge do let us know........
 
#66
Best of big fat luck!
 

mohan.sic

Well-Known Member
#67
Also, why not try it for current week's BN on Wed and Thus? The rapid theta decay will only help us, is it not?

Tough to answer.
Rapid theta decay may or may not help us.

Rapid theta decay will help if delta of the strike is constant or in little move. That is underlying BN should not move too much either direction.

Rapid theta decay will not help if the delta of our strikes changes rapidly.
That is if BN moves in a direction. Dint you notice, sometimes option premiums trading at 1 or 2 rupees will jump to 40 -50 rs. Extremely dangerous if caught.

You may try this expiry. And if it works, don't come to a conclusion that it always works.
 
#68
Hello ,
It has been a few months since the first post.
Would like to know , how it has been. Conceptually this seems to be a very good strategy with the right product.
 

newtrader101

Well-Known Member
#69
Last edited:
#70
Thanks. Shall Monitor.



Simplified way of the above strategy :

Key Idea :
Being Short Straddle. Eating up the time decay.
Key Risk of Short Straddle is the price moving out of range , that too quickly.
How to handle risk : Buy / Sell Future at/within the Straddle breakeven points.
If market is within the Straddle Profit Zone , you make a profit.
If it jumps out , future will mitigate the risk.


Observation (10:00 AM) :
Note :
1. Spot Price
2. ATM/ITM CE Price and ATM/ITM PE Price
3. Future Price

Orders :
1. Sell ATM CE and PE (ATM based on SpotPrice)
Note two points :
UL (UpLimit) : Spot + 20 points
LL (DownLimit) : Spot - 20 Points
2. Buy Future , if FuturePrice > UL
else Sell Future if FuturePrice < LL

Monitor :
If you are Long future , monitor it.
If FuturePrice falls below LL. Close Position by selling. Sell one more lot.
If you are Short future , monitor it.
If FuturePrice goes above UL. Close Position by buying. Buy one more lot.

If FuturePrice is bwtween LL and UL. Remain as such - No new Open Postion in Future.
This is the position where the Straddle is most profitable. Loss in Future should be tolerable/offset.

End Of Day :
Close all positions / Carry Forward one more day if in close proximity of existing straddle
 

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