Tuesday, May 6, 2014

BANKNIFTY EVERY MONTH CALL PUT STRATEGY


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BankNIFTY EVERY MONTH CALL

PUT STRATEGY:-

I have GOT this IDEA from a PUBLIC FORUM. And then I thought to work on it. I worked and BACKTESTED it for many MONTHS. And also TRIED MANY TWEAKS in it. So here is the SETUP to TRADE BANKNIFTY OPTIONS EVERY MONTH.

SETUP:-

  • On EACH EXPIRY CHECK the BANKNIFTY EXPIRY PRICE.(SPOT)

 

  • Then On next day We have to TAKE POSITIONS in CALL and PUT in BANKNIFTY.

 

  • Strike PRICE SELECTION:- Here FOR Example .. IF BANKNIFTY EXPIRES at  CMP 12970 then WE will find 5% of this which COMES 648.50 then WE have to ADD this to BANKNIFTY EXPIRY PRICE to FIND CALL STRIKE PRICE and then WE have to SUBTRACT it from BANKNIFTY EXPIRY PRICE.

 

  • SO now 12970+648.50=13618.50 then we ROUNDOFF this to MULTIPLES of 100 SO this COMEs OUR CALL STRIKE PRICE= 13000 CALL and 12970-648.50=12321.50 ROUNDOFF to 12300 this is OUR PUT STRIKE PRICE.

 

  • SO in this Example we have to BUY 13000 CALL and 12300 PUT of BANKNIFTY after expiry day. AND we have to HOLD it till the END OF EXPIRY …

 

  • EXTRA OBSERVATION:- ONE can MANGE the POSITIONS as the TECH ANALYSIS and SUPPORTs and RESISTANCE.

 

 

Hope this HELPS to SOMEBODY.


For Further Reading,
Trading Systems and Setup, Trading Techniques and Tricks

1 comments:

Soumya Chatterjee on March 13, 2016 at 11:32 AM said...

It did not work for every month

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