My Bank Nifty Options trading diary

pannet1

Well-Known Member
#23
But for this purpose you can reduce number of lots and still play with short straddles and make significant profits. People read theories, I am sharing my experience.
denzo,

many thanks. i am little confused by your statement. First I do not have enough capital to trade more than one lot of Bank Nifty.

Bank nifty is lot volatile than Nifty its easy to touch 1000-2000 points in a month. I am looking for more of a passive trade strategy.

say I am earning 800 points in a short stradle in the beginning of the month, still i will end up in loss because market tend to move 800 points easily.

i am i missing something.
 

pannet1

Well-Known Member
#24
Ok I'll make it easy for you. Try short straddle. With the gap of 500 points. Either 18000ce and 17500pe or 17500ce and 17000pe etc.
Hi denzo,

Really thank you very much for your thoughts and experience for which there is no alternative. names are not important. but just to clarify what you meant to say

in the example mentioned by you for my risk appetite, i should write one lot 18000CE and 17500PE, its technically called as a short strangle and not straddle right.

(OR)

should i enter two straddles 17500CE/PE and 18000CE/PE and maintain index between them or adjust.
 
#25
Short strangle.. right.. wrote in fast flow so called it by mistake but I am talking about strangle only.
Sorry to interrupt in between but find Denjo views interesting.
But would not be better and safe if short strangle to be played in Nifty rather than Bank nifty as Bank nifty is more volatile and there is more risk involved in this.
Denjo as you are more experienced do you find short strangle more profitable than iron condor in the long run say in a year even if we have more black swan day (4-5 in a year)
 

pannet1

Well-Known Member
#26
Short strangle.. right.. wrote in fast flow so called it by mistake but I am talking about strangle only.
Hi denzo,

Thank you very much for your inputs. Not to deny anything you said, but on the iron butterfly positions I published I already took some profits and what you saw is the current one.

The maximum profit achievable is slightly lesser than the maximum loss achievable, but if the index moves away the probability of maximum loss is more than the profit.
 

pannet1

Well-Known Member
#27
Sorry to interrupt in between but find Denjo views interesting.
But would not be better and safe if short strangle to be played in Nifty rather than Bank nifty as Bank nifty is more volatile and there is more risk involved in this.
Denjo as you are more experienced do you find short strangle more profitable than iron condor in the long run say in a year even if we have more black swan day (4-5 in a year)
Hi, yours is no interruptions at all. The problem with me is I don't have enough funds to play Nifty, so we are discussing it.

According to denzo it is safe to play with Nifty as well. Just be prepared to adjust and keep the index between the strangle.
 
#29
1. Nifty gives less slippage. But needs to put more efforts in managing as long distance strangles gets less premium and nifty easily moves 50-100 points up and down in 1-2 days. Banknifty gets good premium for long distances as well. Entire june month I was trading 18000CE and 17500PE without changing strikes. can't do this with nifty. Strike change is required more frequently.

2. One of my production strategy is short strangle in nifty as well as banknifty. Returns are great, very great. Black swans doesnt take much. Todays hardest ever crash took my 1.5 months gains. Not much to make me bankrupt. This was very unpredicted crash. I had survived 24th august 2015 crash because I saw it coming as china was going down few more days before sudden crash. You need to be little aware to avoid swans. Even if you dont, You will be much more profitable than anything on longer run. Take my words.
Thanks Denjo for your inputs. I was going to ask you about 24th August :). But you already answered that. Actually i was not so lucky on that day like you. Though i made some mistake those days. I just started playing short starngle in Aug and that was my first month.In that month, initially i made very good profit that made me a bit over confident and complacent and then came 24th august crash and in single trade i lost all the profit made and principle also.
That is market way to give you learning and show that one has to be always on his toes.That shatters my confidence in short strangle but your views definitely gives some confidence back.
So do you think this is one of the best strategy or any other strategy you have tried and find better than this.
 

pannet1

Well-Known Member
#30
Thanks Denjo for your inputs. I was going to ask you about 24th August :). But you already answered that. Actually i was not so lucky on that day like you. Though i made some mistake those days. I just started playing short starngle in Aug and that was my first month.In that month, initially i made very good profit that made me a bit over confident and complacent and then came 24th august crash and in single trade i lost all the profit made and principle also.
That is market way to give you learning and show that one has to be always on his toes.That shatters my confidence in short strangle but your views definitely gives some confidence back.
So do you think this is one of the best strategy or any other strategy you have tried and find better than this.
abhi!

Obviously there is something about his denzo trades. All strangles are not same. The key is selecting the strikes, adjustment and account size.

hi denzo,
May be I am asking too much. Could you share trade details of the most toughest bank nifty month you had and steered successfully to profit.
 

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