Long term trading strategy nifty options

#1
Hello I have found one long term nifty option trading strategy which I feel its good but I have not back tested if u can find any loop holes in this strategy then please read and let me know so heres the strategy
Let's assume nifty March expiry closed is at 9000 at time of expiry day we have to buy call or put or both
Now if suppose we buying call so we have to buy call of 9400 for April month there should be 400pts diff if put then 400 pt downside so u will get this call around 20rs buy 1 lot that is 75qty so if u want to get out in profit nifty hv to move more then 400pts in that month itself otherwise its going to be zero
Now lets assume in April it became zero now acc to April month expiry buy call of more than 400pts may month whose price will be around 20 buy 75qty say data also gone zero now buy next month call but now double ur qty dat is 150 den next month again 150qty den next month 300qty Next month 300qty again like dat keep on doing in any given month market gives movement of 500 plus u will earn
Dats the strategy's u can do call and put both as per ur investment
Please give ur feedback Wat u wanna say about this strategy ny loopholes if u find or whole strategy u find it wrong for sum reason let me know
 
Last edited:

Subhadip

Well-Known Member
#2
Hello I have found one long term nifty option trading strategy which I feel its good but I have not back tested if u can find any loop holes in this strategy then please read and let me know so heres the strategy
Let's assume nifty March expiry closed is at 9000 at time of expiry day we have to buy call or put or both
Now if suppose we buying call so we have to buy call of 9400 for April month there should be 400pts diff if put then 400 pt downside so u will get this call around 20rs buy 1 lot that is 75qty so if u want to get out in profit nifty hv to move more then 400pts in that month itself otherwise its going to be zero
Now lets assume in April it became zero now acc to April month expiry buy call of more than 400pts may month whose price will be around 20 buy 75qty say data also gone zero now buy next month call but now double ur qty dat is 150 den next month again 150qty den next month 300qty Next month 300qty again like dat keep on doing in any given month market gives movement of 500 plus u will earn
Dats the strategy's u can do call and put both as per ur investment
Please give ur feedback Wat u wanna say about this strategy ny loopholes if u find or whole strategy u find it wrong for sum reason let me know
Wrong approach. Better learn option tradibg
 
#4
What if there are 5+ months without a 5%+ move on NF [Has happened before], One will have to take 2^5 times risk i.e. 32 times the initial risk. Risk of Ruin is high, as with any martingale type strategy.
 
#5
Say after 5 months or even after 2 year also u get 500pt plus move in any month u get good profit by this strategy just your investment increases I have checked with last 4 year historical data and u have got 700pts move in nifty in one month which is good returns
 
#6
Let's assume after 5months we get 500pts plus movement in any month can buy both call and put lets assume buying call
1st month we buy call 20rs 75qty goes 0 loss of 1500rs
2nd month again buy call 20rs 75qty goes 0 loss of 1500rs
3rd month we buy call 20rs 150qty goes 0 loss of 3000rs
4th month we buy call 20rs 150qty goes 0 loss of 3000rs
5th month we buy call 20rs 300qty goes 0 loss of 6000rs
6th month now nifty gives 500plus movement this month we buy call 20rs 300qty goes 120 we get profit of 30k
So overall profit 15k less brokerage which is also not much
 

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