Nifty Option Writing on expiry day

#1
Hi all,

I'm new to trading and slowly learning daily. I'm looking on Strategy to write nifty option on intraday basis on expiry day. The positions I'm looking to write are (after market opens and analysing NSE options chain)

Nifty spot + and - 100 points strike, say if nifty opens at 12150 then write 12250 ce and 12050 pe.

The premiums will be approx 2 rs for both so for one lot 75*2 = 150 rs profit (given nifty stays in between these strikes)

Also I've seen that ASTHA brokerage is giving very good leverage to write options on intraday basis. They need just 2500 rs to write one lot of nifty and brokerage is just 10 rs per lot.

I'm looking to write a total of 100 lots for example and collect the premiums. So is it a good strategy to follow by maintaining strict stop loss.

Am I missing something. Seniors please enlighten.

Thanks.
 

against_tides

Well-Known Member
#2
Hi all,

I'm new to trading and slowly learning daily. I'm looking on Strategy to write nifty option on intraday basis on expiry day. The positions I'm looking to write are (after market opens and analysing NSE options chain)

Nifty spot + and - 100 points strike, say if nifty opens at 12150 then write 12250 ce and 12050 pe.

The premiums will be approx 2 rs for both so for one lot 75*2 = 150 rs profit (given nifty stays in between these strikes)

Also I've seen that ASTHA brokerage is giving very good leverage to write options on intraday basis. They need just 2500 rs to write one lot of nifty and brokerage is just 10 rs per lot.

I'm looking to write a total of 100 lots for example and collect the premiums. So is it a good strategy to follow by maintaining strict stop loss.

Am I missing something. Seniors please enlighten.

Thanks.
Brokerage should be Rs 40 per lot(Sell+Buy)..please check.
 

Subhadip

Well-Known Member
#4
Hi all,

I'm new to trading and slowly learning daily. I'm looking on Strategy to write nifty option on intraday basis on expiry day. The positions I'm looking to write are (after market opens and analysing NSE options chain)

Nifty spot + and - 100 points strike, say if nifty opens at 12150 then write 12250 ce and 12050 pe.

The premiums will be approx 2 rs for both so for one lot 75*2 = 150 rs profit (given nifty stays in between these strikes)

Also I've seen that ASTHA brokerage is giving very good leverage to write options on intraday basis. They need just 2500 rs to write one lot of nifty and brokerage is just 10 rs per lot.

I'm looking to write a total of 100 lots for example and collect the premiums. So is it a good strategy to follow by maintaining strict stop loss.

Am I missing something. Seniors please enlighten.

Thanks.
what u will do if market moves 200 points in lower side?
 
#6
what u will do if market moves 200 points in lower side?
I think the chances for nifty to shoot more than 100 points in one direction on a single day is very less. Even it does what if we square off that position when nifty spot starts to cross 100 points in one direction and wait for the other side to expire and collect the premiums from that side
 
#7
Hi all,

I'm new to trading and slowly learning daily. I'm looking on Strategy to write nifty option on intraday basis on expiry day. The positions I'm looking to write are (after market opens and analysing NSE options chain)

Nifty spot + and - 100 points strike, say if nifty opens at 12150 then write 12250 ce and 12050 pe.

The premiums will be approx 2 rs for both so for one lot 75*2 = 150 rs profit (given nifty stays in between these strikes)

Also I've seen that ASTHA brokerage is giving very good leverage to write options on intraday basis. They need just 2500 rs to write one lot of nifty and brokerage is just 10 rs per lot.

I'm looking to write a total of 100 lots for example and collect the premiums. So is it a good strategy to follow by maintaining strict stop loss.

Am I missing something. Seniors please enlighten.

Thanks.
ur missing back testing go and check past option expiry day data by bar by bar and check how ur Strategy performed. then go live if results are good for last 2 years.
 

SarangSood

Well-Known Member
#8
ur missing back testing go and check past option expiry day data by bar by bar and check how ur Strategy performed. then go live if results are good for last 2 years.
Still a trader needs to have a good understanding of how option selling is done with enough practice of how to adjust strangles with index movements. Option selling & that too on expiry day requires a different skill set and experience all together. That is if he wants to become a geniune option seller for a long term. Otherwise for speculation anything can be done though the risk/reward is very low in this case.

Sent from my HD1901 using Tapatalk
 
#10
Still a trader needs to have a good understanding of how option selling is done with enough practice of how to adjust strangles with index movements. Option selling & that too on expiry day requires a different skill set and experience all together. That is if he wants to become a geniune option seller for a long term. Otherwise for speculation anything can be done though the risk/reward is very low in this case.

Sent from my HD1901 using Tapatalk
Sure will try to learn and improve mate. Thanks for your words. Cheers
 

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