How to earn 2% per week by Option Writing in Nifty and Bank Nifty?

cloudTrader

Well-Known Member
#12
Options ?? Wow !! Many brokers have margin between 7-8k for futures, but I don't know about options.
For that Wisdom charge Rs. 15 per lot of options. I was annoyed with their system of intimating everyday to release margin. Otherwise leverage is good. Upstox charge Rs. 30 per order (In pro plan) and we can trade in approximate Rs. 8,500 for 1 lot of BN Options Weekly.
 
#15
Wow... that’s great .. do you trade with them ?
How do you rate them ?
brokerage is on high side 25 rs per lot
( if u short 20 lots brokerage is 1000 rs comparing zerodha 40 rs)
account opening is online
service is very good
odin and now provided by them.

check below image

Untitled.png
 
#17
I recently heard a very successful Option Trader who mentioned that he earns 2% per week by trading in Option Writing of Bank Nifty?

When I tried to find out how it is possible I did not get the answer.

My thoughts were as follows

Margin required for 1 lot of Option Writing in Positional Trade is approx Rs. 55000/- per lot. If I have to earn 2% then I need to profit by Rs. 1100/- per lot. Lot size is 20. So premium points that I need to earn is 1100/20 = 55. Also brokerage and other charges work out to Rs. 50 per lot. So that works out to premium points of Rs. 50/20 = 2.5. Thus I need to earn 57.5 points per week per lot to earn 2% on my locked margin ie. Rs. 55000/-

Now if we place a trade on Friday morning say a call write some 700 points from the Spot Price and hedge it with put write some 700 points from Spot Price the total premium (call + put) most of the time is around 50 to 80 points. Since there are 2 lots (1 call and 1 put) I need to get 57.5 x 2 = 115 points to earn 2%. So even if market is range bound one can get only 50 to 80 points. Also keeping strike price less than 700 points from Spot Price to earn more premium is risky. Then how can someone earn 2% per week in Option Writing.
just to clear your doubt be sure it can be done . kindly don't ask me how. there are reason not to say .
A six feet tall guy will jump easily 2 feet wall where as a 2 feet kid will get hurted . i am not saying u r kid. all I am saying is I dont know how much u tall enough.
 
#18
WITH HELP OF HIGH LEVERAGE BROKERS YOU CAN SELL BANKNIFTY OPTION AT AS LOW AS 2300. IF YOU ARE WISE ENOUGH TO USE IT , YOU CAN ACHIEVE WONDERS.
 

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