BKB Diary

[bkb]

Buy (to close) Call 160.00CE ~ @ 3.20
Sell (to open) Call 150.00 CE ~@ 5.85

Sell (to open) Call 140.00 CE ~@ 6.30

 

[bkb]

Sell 14150 CE Weekly Expiry (07-Jan-2021) ~ @ 57
Buy 14150 CE Monthly Expiry(28-Jan-2021) ~ @ 279

Reasoning:
Mild Bearish outlook and accelerated decay of premium, being last day of weekly expiry.
Low risk and high probability in my opinion (yes, expected returns are also on lower side ~ 25 points)
(not a trading recommendation, just a paper trade)

 

[bkb]

BANKNIFTY
Lot size: 25
Expiry: 25FEB2021
(Monthly expiry)

View: Mild Bullish Bearish [Reason: Good run up in past few months, specially ~ 8 - 10% in last two weeks]

Buy Call 36000 CE @~883
Sell Futures @~ 35,790
Sell PUT 34000 PE @~410

Maximum Loss potential ~ 700 points (~2%)
Position will come into profit only if BANKNIFTY falls below ~ 35,300.
Possible Maximum gain ~ 1,300 points (~ 4%)

(not a trading recommendation, just a paper trade)

 

[timepass]

BANKNIFTY
Lot size: 25
Expiry: 25FEB2021
(Monthly expiry)

View: Mild Bullish [Reason: Good run up in past few months, specially ~ 8 - 10% in last two weeks

Buy Call 36000 CE @~883
Sell Futures @~ 35,790
Sell PUT 34000 PE @~410

Maximum Loss potential ~ 700 points (~2%)
Position will come into profit only if BANKNIFTY falls below ~ 35,300.
Possible Maximum gain ~ 1,300 points (~ 4%)

(not a trading recommendation, just a paper trade)

Wow !! That's a lot of premium on the PEs.

 

[bkb]

BANKNIFTY
Lot size: 25
Expiry: 25FEB2021
(Monthly expiry)

View: Mild Bullish Bearish [Reason: Good run up in past few months, specially ~ 8 - 10% in last two weeks]

Buy Call 36000 CE @~883
Sell Futures @~ 35,790
Sell PUT 34000 PE @~410

Maximum Loss potential ~ 700 points (~2%)
Position will come into profit only if BANKNIFTY falls below ~ 35,300.
Possible Maximum gain ~ 1,300 points (~ 4%)

(not a trading recommendation, just a paper trade)

Buy (to close) PUT 34000 PE @ ~71 (Expiry: 25FEB2021)
Sell (to Open) PUT 36000 PE @~140 (Expiry: 18FEB2021)

 

[bkb]

Buy (to close) PUT 34000 PE @ ~71 (Expiry: 25FEB2021)
Sell (to Open) PUT 36000 PE @~140 (Expiry: 18FEB2021)

Buy (to Close) PUT 36000 PE @~10 (Expiry: 18FEB2021)
Sell (to Open) PUT 36800 PE @~135 (Expiry: 18FEB2021)

 

[bkb]

Buy (to Close) PUT 36000 PE @~10 (Expiry: 18FEB2021)
Sell (to Open) PUT 36800 PE @~135 (Expiry: 18FEB2021)

Buy (Expiry close Out) (to Close) PUT 36800 PE @~220 (Expiry: 18FEB2021)

Current Outstanding position:
Long Call 36000 CE @~883 (Expiry: 25FEB2021)
Short Futures @~ 35,790 (Expiry: 25FEB2021)

Points gained from Put Options: ~ 384 [(410 - 71) + (140 - 10) + (135 - 220)]

 

[bkb]

Buy (Expiry close Out) (to Close) PUT 36800 PE @~220 (Expiry: 18FEB2021)

Current Outstanding position:
Long Call 36000 CE @~883 (Expiry: 25FEB2021)
Short Futures @~ 35,790 (Expiry: 25FEB2021)

Points gained from Put Options: ~ 384 [(410 - 71) + (140 - 10) + (135 - 220)]

Sell (to Open) PUT 35300 PE @~143 (Expiry: 25FEB2021)

 

[bkb]

Script: IDEA
CMP: 8.95
Lot size: 70,000
Notional contract value for one contract (as per last traded futures price)
: 626,500 (= 8.95*70,000)

Expiry Date: 29APR2021 (i.e. April expiry)

View: Neutral to Bullish

Strategy (All April expiry):
Sell 1 lot Put 9.00PE ~ @ 0.40
Buy 1 Lot Put 8.00PE ~ @ 0.15 (Purchase cost: ~ 10,500)

Max Risk: 0.75 per Lot {(9.00 - 8.00) - (0.40 - 0.15)}
Max Profit: 0.25 per Lot

As 14 days to go for monthly expiry and seems strong support in 8.85 to 9.85 range, wish to capture decay in option premium.
Even if Risk to Reward is 3:1, highly adverse ratio, but probability of this trade closing in green seems higher.

On additional note, one may also add say, 12.00 Call @ ~ 0.05 per Lot, just in case any positive announcement is made in script.

(not a trading recommendation, just a paper trade)

 

[bkb]

BANKNIFTY ~ 33,620

Considering todays' movement, Is it going to give quick decline of 150-200 points?