Rules-based Banknifty/Nifty Option selling.
Instrument: Nifty or Banknifty
Intraday trading system.
1. System entry time: 9.30 AM
2. System Exit: 3.24 PM or System level SL hit or India Vix RSI above 70 levels (3min)
3. Three times we do adjustments and 3X as initial SL
Instrument: Nifty or Banknifty
Intraday trading system.
1. System entry time: 9.30 AM
2. System Exit: 3.24 PM or System level SL hit or India Vix RSI above 70 levels (3min)
3. Three times we do adjustments and 3X as initial SL
Let's see the trade initiation and adjustment rules.
1. If Vix RSI is below 70 levels at 9.30 we will sell 15D put option and 20D call option (* D means Delta premium may be +-1).
2. if any option delta increases 8 points then we will do our adjustment (maximum three-time).
1. If Vix RSI is below 70 levels at 9.30 we will sell 15D put option and 20D call option (* D means Delta premium may be +-1).
2. if any option delta increases 8 points then we will do our adjustment (maximum three-time).
3. If call delta reaches to 28 levels then we book profit in put side and sell a new put option (15 D+8D=23D) whose trading near at 23D.
4. Repeat the same, Next adjustment if call side (28+8=36D) or put side (23+8=31D) then do adjustment same as above step no 3.
4. Repeat the same, Next adjustment if call side (28+8=36D) or put side (23+8=31D) then do adjustment same as above step no 3.
5. Third time also do the same adjustment if call side (36+8=44D) or put side (31+8=39D) reach then do an adjustment.
lets understand this point, if we assume that put side delta reach at 39 then we will book the current call and sell new call side with 44D,
lets understand this point, if we assume that put side delta reach at 39 then we will book the current call and sell new call side with 44D,
The third adjustment is at near ATM strangle, Mostly 100-200 points away call and put option.
Once we reach to third adjustment we will keep the 5% option combined premium as SL. if call trading at 200 and put at 200. Then 5% of combine is (200+200= 400 ) 5% of 400= 20, SL 420
Once we reach to third adjustment we will keep the 5% option combined premium as SL. if call trading at 200 and put at 200. Then 5% of combine is (200+200= 400 ) 5% of 400= 20, SL 420
Once combined premium reach at 420 then exit the whole trade
Global SL for this trade is 60 points in BN and 30 points in nifty means if M2M -1500 then we exit whole trade,
if any time India Vix is above 70 then exit it.
Initial SL is 3 times of CE/ PE premium.
Global SL for this trade is 60 points in BN and 30 points in nifty means if M2M -1500 then we exit whole trade,
if any time India Vix is above 70 then exit it.
Initial SL is 3 times of CE/ PE premium.
Profit booking:
Once you can get 80 points in BN / 40 points in Nifty or M2M 2000 profit then book the trade.
Lets see the example,
26 May expiry, Trade has taken date 23rd May
-1*33100put (96)- 15 Delta
-1*35200call(130) - 21 Delta
Once you can get 80 points in BN / 40 points in Nifty or M2M 2000 profit then book the trade.
Lets see the example,
26 May expiry, Trade has taken date 23rd May
-1*33100put (96)- 15 Delta
-1*35200call(130) - 21 Delta
First adjustment:
23-May-2022 11:20
Book put and roll up put with 23D.
23-May-2022 11:20
Book put and roll up put with 23D.
Second adjustment put side reach to 31D (23+8=31D)
23-May-2022 14:15
Book call side and sell CE of 36D(28 Previous D+ 8=36)
position look as below
23-May-2022 14:15
Book call side and sell CE of 36D(28 Previous D+ 8=36)
position look as below
No need of further adjustment
Final position as below
Final position as below
if you have any queries kindly put them here or DM me, I will try to resolve as many as possible
if possible will make one video with an explanation of 5 different case studies.
if possible will make one video with an explanation of 5 different case studies.
Loading suggestions...