How to make definite profits from monthly Option Selling in Nifty? (Dec 29 Expiry)
Strategy Used: Take a directional position first and then convert to Strangles/Iron Condor (IC) to make it non-directional.
Strategy Used: Take a directional position first and then convert to Strangles/Iron Condor (IC) to make it non-directional.
One can also sell strangles/IC initially for the range identified, but the return will be slightly lower and need adjustments.
Expected return: Around 6-8% for 3 weeks (ROI can be improved by buying hedged to reduce margin)
Expected return: Around 6-8% for 3 weeks (ROI can be improved by buying hedged to reduce margin)
Steps
1. Identify the weekly/monthly range: 18,900 (all-time high) and 18,100 (previous swing low - DTF). These will be the break-even levels on the upside and downside, respectively.
2. Identify the trend: bullish on Weekly, Daily and Hourly TF (Higher highs and lower highs made
1. Identify the weekly/monthly range: 18,900 (all-time high) and 18,100 (previous swing low - DTF). These will be the break-even levels on the upside and downside, respectively.
2. Identify the trend: bullish on Weekly, Daily and Hourly TF (Higher highs and lower highs made
3. Follow the trend: High probable trades always follow the trend. Sell 18,100 and below PEs once the hourly swing high is broken or from support (reversals).
4. Hedging at resistance: Sell 18,900 and above CE’s and convert the position to Strangles. Now the range has been locked
4. Hedging at resistance: Sell 18,900 and above CE’s and convert the position to Strangles. Now the range has been locked
The position will be in profit as long as Nifty consolidates in the range.
5. Adjustments: If the market trends in either direction. (will be updated)
5. Adjustments: If the market trends in either direction. (will be updated)
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