BANKNIFTY EVERY MONTH CALL PUT STRATEGY

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.

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Price Action Trading--- NIFTY SUPPORTS BECOME RESISTANCE—Excellent Intraday Trade Opportunity

These days I am emphasizing on Price Action Trading. I am having my chart totally clean without any indicators on it. And this is giving me excellent High Probable, High Reward Low Risk Trades .

Above Chart of Nifty Future on November 09  is Self  Explanatory. In first half till 12.00 PM Nifty Future was trading in a range and then it broken the range. And it came down and after that Nifty Future again Came to the level of 6198 which was the previous support now become resistance and that worked well for a NICE SHORT with very low risk and high Probability and given reward of more than 20 POINTS.

Why this Happens ?

• First thing that all trades goes with the Traders Making decisions with their EMOTIONS.  So here at every POINT their emotions are forcing them to make Decisions.

 

• Now when till 12.00 PM Nifty Fut was trading in a Range and its low till that time was 6197. So when Nifty Fut BROKEN that low after GRINDING in a RANGE for lot of time what happened is TRADERS those who EXPECTING Nifty FUT to go UP they have PLACED their STOPS below the range low and also NEW TRADERS also made SHORT here so prices went very FAST towards 6175 after BREAKING the 6197 due to this FORCE BY STOP hitting and NEW SHORTS.

 

• But entering at direct Breakdown is always risky so I did not entered at breakdown. Then Price started going up and it reached around the levels of 6198 where there are Traders Like Me and also those who Missed the Chance to enter short entered short. Now this PREVIOUS SUPPORT OF 6197 NOW BECOME RESISTANCE. Now Prices Started going down and when they came below they low of 6175 , at this POINT the TRADERS who made LONG when Market Started going up from these levels their STOPS placed below the 6175 they hit and also STOP SHORT orders also triggered and they taken PRICES down very FAST to levels of 6165. This was NICE 30 POINTS Trade with low RISK.

 

DO SHARE YOUR OPINIONS.

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Simple Intraday Trading Strategy in Uptrend –Buying at Support

 

Simple Technique to make Excellent Profitable Trades:-

• Simple technique for making winning Trade in Crude OIL (Can also be used for other commodities, equity and FnO also)
• First must know that trend is up, this can be known by many things like making higher highs and higher lows on chart or Trendline, Channel, or any other technique like moving averages.
• Now just let it settle after opening then when it makes higher low, draw a rectangle which must cover two three candles where it made higher low.
• Now when it again comes at upper side of rectangle then buy can be done with SL of 10-15 Points (as we are talking about crude oil) Book at your convenience. And again can be bought at the support level till it making highs or trend is intact.

 

With this technique no other indicators are required only Intraday Chart with some drawing facility is OK.

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