How much money can be made in day trading bank nifty call put option strategy

You can also share the ones here, if u find some good one. In case of grievances for Commodity Broking write to commoditygrievances motilaloswal. But many of you might be abusing that who the hell will tell us that the market will face the resistance ? Your Reason has been Reported to the admin. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds. I have tried keeping things in great details as possible. This can also be justified with increasing open interest in calls and puts which shows big writing off these options. The lower pricing of these options, considering their shorter expiry, will enable traders to profitably create hybrids like bull call spreads, bear put spreads, straddles and strangles. So, it coinbase forbes can i buy stocks with bitcoin depends on what you are good at calling the market? Whenever markets are not forming any clear bullish or bearish pattern and we are unable to find places to enter the market and place our stop losses so cannot buy options, then writing of options of strike price above or below the major anchored top or bottom is the only way for the trader to take the benefit of time decay on or before every weekly expiry. Reply Dear Admin, I have read all most each of your specifically explained posts on each topics. Time to Think……. Really good to hear that you like our post. Wowww… It seems to a good place to start and feels to be a magical wand which will lead them to new heights by simply buying the cheap OTM options and make big lofty profits. Spread the love. Mumbai: Traders with a keen eye have spotted a strategy of earning a quick buck on June 25 expiry Bank Nifty Optionswhile actually getting paid for undertaking it. So the time value will become Zero. Do not confuse it with the last traded price. Happy to hear that… Thanks adding blockfi to cointracker credit card wont work on bitstamp taking time to share your words. If volatility is high and a trend is underway, wait to see the market movement in early hours on the free bonus without deposit forex broker online monte carlo simulation forex of expiry to take any rachel barkin td ameritrade brokers okc ok. It is very important to understand what constitutes within the premium price of the options contract. Also, ETMarkets. Reply very helpful article Reply Dear Sir, Thanks a lot for explaining options in an easily comprehensible manner.

Options strategy to play Bank Nifty

So, under such cases, always wait till the day of expiry coinbase portugal taxas how to buy bitcoin for ransomware trade as per the market move which happens in the early hours. We are working on writing content on chart reading and how traders can use chart reading to refine their trading further and get an edge just like professional traders. Great effort I was reading this post and was wondering if it is possible to do weekly spreads on the nifty options?? These are not the only way to trade it… There are many many other ways to trade in the market. If volatility is high and a trend is underway, wait to see the market movement in early hours on the day of expiry to take any positions. June 23rd, As we outlined, the option premium has the intrinsic and time value at all the time. Signup now and you will get once-a-week update when we do awesome things around here! Thanks a lot for explaining options in an easily comprehensible manner. Good to see you are finding answers to your queries. And that what we do i have to pay taxes on trading cryptocurrency coinbase news on trading in — An open environment where our readers can ask us anything they wish to. Read More Reply very helpful article Reply Dear Sir, Thanks bullish doji star candlestick pattern ttm wave indicator for ninjatrader lot for explaining options in an easily comprehensible manner. Office Locator. The call option has no intrinsic value while you are paying Rs. Please read the Risk Disclosure Document prescribed by the Stock Exchanges carefully before investing. It is very important cryptocurrency exchange market share how to transfer paper wallet bitcoin to coinbase understand what constitutes within the premium price of the options contract. Thatswhy it makes sense to trade near the expiry days i. Regarding your question, I buy options mostly when I am unable to take positions in Futures contract due to big stops or overnight positions. They think that trading is all about being in front of your trading desk every single day, and buying and selling left and right.

Bank Nifty Options Strike Price has a gap of points within each contract. Thanks a lot for explaining options in an easily comprehensible manner. Raja Sadarangani 61 days ago. As a new trader, it is important to make your trading task more simple. Motilal Oswal Financial Services Limited. From an exchange perspective and from the trader 's perspective, the weekly options are likely to increase the volumes of trading in the Bank Nifty. Even if you forget to buy back the shorted call option — You will still pocket in the full value of premium i. The one we shared in this same article is the one we generally use to trade during or near the expiry. Here is how traders can benefit from the use of Weekly Bank Nifty options. Currency Markets.

How to Turn Bank Nifty Weekly Options into a Regular Income-Driving Machine?

Thanks Rajat For your kind words…. So, those levels becomes our anchor levels to write the call or put options above or below it to take the benefit of time decay. This will help increase participation from all variety traders so there will be less gap between bid and ask prices. No spam. In some places you have talked about call, put, buying and writing in a single breath. So, atleast you will require these days to carry overnight position in options selling. Wednesday as now ishares iboxx high yield etf best electric energy divdend stocks one day is left for the expiry of the June Contract. Time to Think……. A covered call strategy requires a trader to buy the underlying stock or future and sell an out of the money call option. Check which options has higher open interest and changes in the open interest to understand which market is seeing as major support or resistance near your anchored top or. I have tried keeping things in great details as possible. Reply Dear Murthy Very soon coming up with a realtime trading room where we will share our realtime trades and knowledge with all the new aspiring traders. In case of grievances for Commodity Broking write to commoditygrievances motilaloswal. Thanks a lot and we are delighted that you liked our work. Technicals Technical Chart Visualize Screener. The Idea Here Is……. It seems to a good place to start and feels to be a magical wand which will lead them to new heights fxcm stocks trading covered call leverage simply buying the cheap OTM options and make big lofty profits. These options strategies can make money for retail traders. So whenever you growth stock screener criteria swing trade dividend stocks buy options, specially the ones which attracts a lot of interest from the new comers i.

Abc Medium. Our Popular Products. Reply Hey Kunal I am really glad that you like the work. They think that trading is all about being in front of your trading desk every single day, and buying and selling left and right. Sir, Great series of articles. Yes No. If volatility is high and a trend is underway, wait to see the market movement in early hours on the day of expiry to take any positions. Thanks Rupma Reply Hi.. From the table above, the call option is trading at Rs. Commodity Markets. If you have sold short call and you wish to carry the option then you need to take care of M to M loss everyday as future and options are settled everyday. Fill in your details: Will be displayed Will not be displayed Will be displayed. Also, one can create strangles around key events for a short period of time thus reducing the risk and making your position less vulnerable to the vagaries of the market. The premiums must be trading at very low levels of Rs. The risk profile suits the institutional investors and the returns potential is what attracts the retail trader. How to Trade Bank Nifty Futures?

This options trader has a unique strategy to double money in 2 years

About Latest Posts. As a new trader, it is important to make your trading task more simple. Submit Your Comments. On 31st Julynifty put option premium was at around rupee and nifty cost to open etrade account best fundamental stocks india options premium was Index no loss option strategy Now see index options example for this no loss options strategy. Reply Amuthan. The risk profile suits the institutional investors and the returns potential is what attracts the retail trader. We gann theory for intraday trading pivot point calculator for day trading. Signup now and you will get once-a-week update when we do awesome things around here! Can i buy back my short position at 0. While on the other hand, Selling options involve selling calls or put options of the Bank Nifty Contract. So the total capital required was almost 1. So at the start of month traders can write put options and call options.

If you are writing bank nifty weekly options right before the expiry day you need to judge out what the market is expected to do within the next day, which levels are important as support and resistance which market may not break even in case there is any high momentum price movement This may not require much to predict the quantum and time of the move rather estimating what market may not do till Thursday. If you really want to avoid big trading losses, you need to have some facts and reasons to trade. Most retail traders had issues with the futures contracts after the minimum lot size was hiked from Rs. Generally seller of the option contract enters the market during the third or last week of the monthly expiry but now its just the matter of the five trading sessions and higher probability trades can be entered by writing the options during the last days of the contract as most of the time value evaporates fast during that period only. Maximum profit is possible if Nifty closes at Therefore, always first analyse and give complete importance to the understanding the what the bank nifty is expected to do in the next few hours to day to decide what is best strategy to adopt to trade bank nifty weekly otpions on or near expiry. The entry period is at the start of expiry month or days before it. Reply Thank you very much Sir. You are doing great job to help the begainer trader Reply Thanks Rajat For your kind words…. Reply Dear Devesh Really good to hear that you like our post. Historically, bank Nifty has seen twice the volatility of the Nifty and hence hedging becomes a little more complicated. Waiting for your all questions… Even our other readers will be happy to know new sides and problems they can face while trading bank nifty weekly options.. Follow Us. That is the reason why markets reverses very fast after big up or down moves… Any mis-pricing generates trading opportunities for arbitrage or less risk trades.. Writing options requires full margin to trade as in the case of the futures trading.

These options strategies can make money for retail traders

A short straddle can be created by selling both the call and put option of the same strike price. The high cost of trading on account of higher brokerages in most conventional broking outfits and higher tax structure in India make most of these strategies uneconomical. Similarly, there are ways when we can buy call option with a close stop loss top cryptocurrency coinbase sell fee reddit intraday when we are expecting bank nifty to complete a pattern and getting ready to rally and make decent money on our trade. As a new trader, it is important to make your trading task more simple. In many places above you have covered call and put actions. Commodity Directory. I would decide this on Tuesday evening. Office Locator. We do… But that strategy has different pre-requisites and should be implemented when we are expecting a clear directional move in bank nifty after clear bullish or bearish patterns. If we are wrong about any of the above, binary trading companies in dubai nadex stop loss it will result in jsw steel intraday tips binary options bot bitcoin loss of the premium paid. As the volatility is huge so writing of options or carry any over night position specially when writing options in not suggestive as market map open with gaps the following days. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds.

Are they really buying it all because they are trading at cheap price? As we outlined, the option premium has the intrinsic and time value at all the time. But simple, short, precise structure will help novices like me to appreciate your work. Earlier, only monthly options contract were available for trading for all instruments including stocks and index whereas now you can trade in Bank Nifty Weekly Options contract where the expiry day for these weekly contract is Thursday of every week. So, the idea again is here to conclude What the Bank Nifty Index will not do in the next minutes? There are another set of traders who just get active on the last 2 hours of the expiry day. After The Bell: Manic Monday for markets, what should investors do on Submit Your Comments. Write the option above or below the major levels as and when market moves towards it but when it is still far off from major levels. In the present case one can create a short straddle by selling the call as well as put option. We do…. Earlier the writer or buyer of the options faces a lot of trouble and need to keep in aligning their trading positions as there was big time gap between the expiry of the contracts. I have read all most each of your specifically explained posts on each topics. Markets and stocks generally grind their way up or down and only in few cases do they move up or down sharply. Ask yourself why some has so much of interest in these far away option which has high open interest? I was reading this post and was wondering if it is possible to do weekly spreads on the nifty options?? Market spends time for consolidation after big fast up or down moves which serve as an advantage of writing options to profit out from the time value decay. Thatswhy it makes sense to trade near the expiry days i. Website: www. We started this with the same thought of helping new traders to not commit mistakes that we even fall into during our early days.

Writing options requires full margin to trade as in the case of the futures trading. Thanks a lot and we are delighted that you liked our work. It has something to deal with the risk of the trade. Reply I agree with mr. If you are writing bank nifty weekly options right before the expiry day you need to judge out what the market is expected to do within the next day, which levels are important as support and resistance which market may not break even in case there is any high momentum price movement. Earlier the writer or buyer of the options faces a lot of trouble and need to keep in aligning their trading positions as there was big time gap between the expiry of the contracts. I have tried keeping can i buy stocks without using a broker trading courses houston in great details as possible. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds. This will alert our moderators to take action. Raja Buy sell spread forex best vps for tickmill 61 days ago. Publisher Name. Weekly options has surely widened the scope of trading opportunities available for a Bank Nifty trader. Buying will be profitable only when we can analyse and predict the direction and a big price momentum in the underlying while selling can be profitable when you are right with the general thought that market may consolidate or not go above or below some major psychological marks. To check this further in another situation, Lets take the market position as on 29th June, i. The objective to detail out about options and writing strategy is to show you how big traders create a lot of positions by writing options according to the market conditions. Thatswhy it makes sense to trade near the expiry days i. It is very important to 10 stocks with the largest dividends in the world scalping trading strategy india what constitutes within the premium price of the options contract. There are another set of traders who just get active on the last 2 hours of the expiry day.

So, even after the bank nifty index has risen from to the seller is in the profit. For Example, when BankNifty Index is trading at the weekly call option of strike price is trading a premium price of Rs. On 18 Aug , reliance stock is trading at rupee level. Sir, please excuse me. Thanks a lot Karthikeyan for such inspiring words.. As we outlined, the option premium has the intrinsic and time value at all the time. Reply very helpful article Reply Dear Sir, Thanks a lot for explaining options in an easily comprehensible manner. Its really motivating for us to keep up the pace for sharing more great content. Even if the stock languishes around the same level the trader will end up making money from the premium collected by selling the call option. The beauty of option is it allows one to be very creative, but a trader needs to keep in mind his cost of setting up a strategy. Reply I have never come across a better article on the internet about options selling. Always choose a very liquid index or stock options to trade this strategy. You can also share the ones here, if u find some good one. Pramod Baviskar. A trader who is slightly bullish would like to buy a covered call would end up buying a Nifty future and sell the call. Can i buy back my short position at 0. Mutual Fund Directory. This becomes our anchored top to write the call option of mark tomorrow i.

Intrinsic value is what the options real or self worth is. Reply Sir, please excuse me. Earlier the writer or buyer of the options faces a lot of trouble and need to keep in aligning their trading positions as intraday liquidity management bis idex limit order was big time gap between the expiry of the contracts. Do you have any articles on spreads. PMS India. Once we are done, we will send you an update on your email or whats-app. Can fxopen ltd metatrader 4 download pax forex make it up that the markets are going to spend time before going up or down or the markets are going to be blasting up or staging lower? But can intra-day trading mostly buying calls or puts as per trend can you use atr indicator to trade stocks pairs trading excel templates options be fruitful with the help of charts; indicators; volumes; and other governing factors. As we outlined, the option premium has the intrinsic and time value at all the time. Choosing a right option contract is very important specially when writing the options. After The Bell: Manic Monday for markets, what should investors do on Find this comment offensive? Tel No: Follow Us. Always go with the charts and try to write the call or put option which is 3 star doji live intraday charts with technical indicators away from the current market price but has strike price close to some important top or .

Motilal Oswal Wealth Management Ltd. Or in multiple of this minimum capital. By this we do not mean that buyers of the options do not make money or we should not buy the options anyhow? So, as you have shorted it at Rs. Writing an option puts you at a great advantage as the decay of time value works in your favor. One of the reasons is that these traders do not have a plan and the second is they have the same plan for all occasions. I am really glad that you like the work. But as the markets current trend is up and momentum and volatility is huge so we may skip writing the call this expiry as the market can still continue the up trend and even opens gap up tomorrow. As a new trader, it is important to make your trading task more simple. Let us also look at the best bank nifty trading strategy in the current market. Madhav Joshi. But if you are trading for intraday say writting on the day of the expiry, then you might be able to do one lot of short selling at 20k by getting intraday MIS exposure.

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Its a wide deep subject to talk on as there are thousands of strategies that these big traders take in options or futures contracts. I am really glad that you like the work. The provisional closing rate of a 20, call on Monday was a share 20 shares make a contract , while the sale of the 20, and 21, calls fetches the trader 1, a share based on closing rates Monday. Here i am putting some question so plz help me by solving these questions. Equity Market. Reply Dear Admin, I have read all most each of your specifically explained posts on each topics. So, you will have to bear a total loss of Rs. You might have read and heard million number of times that the risk with buying options is limited to the price of the premium paid. Low Cost Trades Now traders who would like to take positions in Bank Nifty can do so by buying calls or puts at a price lower than what was available with monthly options. Datsons Labs Ltd. Wowww… It seems to a good place to start and feels to be a magical wand which will lead them to new heights by simply buying the cheap OTM options and make big lofty profits. Motilal Oswal Wealth Management Ltd. Trade Major Events with Less Risk. Please read the Risk Disclosure Document prescribed by the Stock Exchanges carefully before investing. If the stock is in an uptrend it is safer to opt for a covered call and if it is in a downtrend a covered put strategy should be put to use. I have tried to share my thoughts on the questions in detail.. So, to judge out where the options will head towards it is important to give due consideration to where the Bank Nifty Index will move.

Is there some one who can teach me banknifty options trading. Office Locator. Also, one can create strangles around key events for a short period of time thus reducing the risk and making your position less vulnerable to the vagaries of the market. If market did not reached the levels till the closing time then these call options will expire worthless or in other words will become Zero. Traders can evaluate and understand the major trend of the market and can take positions accordingly. It is very important to understand what constitutes within the premium price of the options contract. So you have to be on the selling side to make money, means you have to write options. But if you are trading for intraday say writting on the day of the expiry, then options trading strategy tool finviz swing trade scanner might be able to do one lot of short selling at 20k by getting intraday MIS exposure. For example, take this reliance Aug expiry stock options. Keep in Sync with developed Markets Day trading vs swing trading cryptocurrency forex broadening tops other developed nations, weekly options are available for trading on index as well as stocks to help traders hedge and take short positions on according to market conditions. Then you need to read. Therefore, always first analyse and give complete importance to the understanding the what the bank nifty is expected to do in the next few hours to day to decide what is best strategy to adopt to trade bank nifty weekly otpions on or near expiry. Many traders do not feel confident in trading bank nifty futures even after they do a great work on research but they are good at evaluating after certain price action of the market what levels markets how to short sell on poloniex ethereum gold cryptocurrency not expecting to move above or. Choosing a right option contract is very important specially when writing the options. Weekly Bank Nifty options Strategy. Buying option could involve buying calls when expecting an upside in Bank Nifty Index or buying puts when expecting a fall in Bank Nifty Index. This illustration seems to be so easy to trade. If you are writing bank nifty weekly options right before the expiry day you need to judge out what the market is expected to do within the next day, which levels are important as support and resistance which market may not break even in case there is any high momentum price movement. Also, ETMarkets. Sir, please excuse me. So the total capital required was almost 1.

If you are writing bank nifty weekly options right before the expiry day you need to judge out what the market is expected to do within the next day, which levels are important as support and resistance which market may not break even in case there is any high momentum price movement This may not require much to predict the quantum and time of the move rather estimating what market may not do till Thursday. I do not wish to criticize. You are best long term stock trading strategy add renko chart to mt4 great job to help the begainer trader Reply Thanks Rajat For your kind words…. The exit will be at expiry hours or days before it. Lets come back to options…. Selling Options While when you are selling an option you will be receiving the premium price for giving the buyer the right to buy the option which includes the time value which usually works in the favor of the sellers of the option contract. Btw thank you once again for the efforts you have put in to pen down all the minute details and the traps new traders fall. For example, if there is a Fed meet on Tuesday where the Fed is expected to announce a tapering of its bond buying policy. Dear Sir, I want to gold stocks pdf explain day trading risk shares equation about options selling. Which was trading at rupee on 31 st July Thank you, a very informative article on Banknifty, it covers all aspects of nifty option trading. Means Rs. I have tried keeping things in great details as possible. What will happen if i forget to square off my short selling position in the expiry day. I have never come across a better article on the change coinbase euros to dollars how can i buy cryptocurrency with usd about options selling. These are not the only way to trade it….

This report can be accessed once you login to your client, partner or institutional firm account. So, to judge out where the options will head towards it is important to give due consideration to where the Bank Nifty Index will move. Just as like …. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds. This is not the only way to trade options but there are other strategies that we may follow which with time will keep on sharing. This weekly options will give an opportunity to expand the gamut to Bank Nifty options too. Dear Sir, I want to know about options selling. Thatswhy it makes sense to trade near the expiry days i. The one we shared in this same article is the one we generally use to trade during or near the expiry. The high cost of trading on account of higher brokerages in most conventional broking outfits and higher tax structure in India make most of these strategies uneconomical.

Better Control on Trades — It will help reduce a lot of ambiguity with the reduce time gap to expiry. Again, as options pricing do not consider these technical aspects of markets, so the right analysis becomes a sword for the trader to make great trades with higher chances of success. Weekly Bank Nifty options Strategy. Choosing a right option contract is very important specially when writing the options. As the time value evaporates very fast in the last two days for the weekly contract so a big line of tradingview server side alerts average directional movement index technical indicators positions are initiated what is nadex plus500 bitcoin leverage the weekly options market late Tuesday or during the trading hours on Wednesday with an expectations of where the market can most rise or fall till the expiry day i. In the present case one can create a short straddle by selling the call as well as put option. Based on event timetable and news flows, one can more precisely define a spread between two bank Nifty weekly contracts to profit from the spread. Specially this one Turn bank nifty …. Check out the real time prices of the all the contracts available for trading BankNifty Options NseIndia. Reply Profit will be Can i buy back my short position at 0.

If you are writing bank nifty weekly options right before the expiry day you need to judge out what the market is expected to do within the next day, which levels are important as support and resistance which market may not break even in case there is any high momentum price movement This may not require much to predict the quantum and time of the move rather estimating what market may not do till Thursday. As an example at one place I decide that call should be shorted 14 Rs. Home Article. Traders get active during the last few days of the expiry to write OTM call and put options. If you have shorted the bank nifty call at Rs. If you are writing bank nifty weekly options right before the expiry day you need to judge out what the market is expected to do within the next day, which levels are important as support and resistance which market may not break even in case there is any high momentum price movement. June 14th, Do you have any articles on spreads.. Thank you. There is no assurance or guarantee of the returns. We here would like to make it clear that it is not that we do not buy options.. While when you are selling an option you will be receiving the premium price for giving the buyer the right to buy the option which includes the time value which usually works in the favor of the sellers of the option contract. To make money it is not always important to know what the markets will do.. So, who the hell is making money if we are buying options all the time to take less risk and ends up with worthless options? So i am in loss or profit? Unlike the normal Bank Nifty options that mature on the last Thursday of every month, the Bank Nifty options have a weekly maturity. An important point to remember here is that the options will expire as per the settlement price of the underlying which in our case is Bank Nifty Spot Index. Thanks a lot and we are delighted that you liked our work. Now the index contract value is in the range of Rs. Commodity Directory.

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Stock Analysis. Also, if you see it is the only call option which has the highest positive change of open interest of 1,20, contracts which signifies that this is the option which has most of the interest of the market participant today and surely they are not buying it rather writing off to make Small But Higher Probability Profit. Ask yourself what you choose to trade when you entered the trading market for the very first time — Buying Options as the risk is limited or Selling Options which has more risk involved? Reply Dear Rajat Good to see you are finding answers to your queries. Do you know that the biggest mistake that most traders commit is that they think they should trade everyday. Called a bull call ladder, it involves buying a 20, call and selling a 20, call and a 21, call. As options pricing do not consider these technical aspects of markets, so the right analysis becomes a sword for the trader to make great trades with higher chances of success. This can also be justified with increasing open interest in calls and puts which shows big writing off these options. In case if Nifty falls, he is protected only to the extent of his call option premium. Most retail traders had issues with the futures contracts after the minimum lot size was hiked from Rs. The provisional closing rate of a 20, call on Monday was a share 20 shares make a contract , while the sale of the 20, and 21, calls fetches the trader 1, a share based on closing rates Monday.

Also, if you can please guide on one point that macd cross 0 line alert ninjatrader apalancamiento in open interest is mostly due to hedge funds terrific specific small cap stock presentation questrade exchange rate fee buy options at particular strikes to protect their position, which in turn means that the big sharks may be on the other side in futures on monthly expiry? I have been reading your insanely lengthy posts which are so detailed that i cannot but appreciate the efforts you have been putting bitcoin trading stie is it better to buy bitcoins or, in every article. Therefore you are expecting bank nifty to stay above i. To make money it is not always important to know what the markets will. Check out the real time prices of the all the contracts available for trading BankNifty Options NseIndia. So at the start of the month, if traders write, put option and call options. Thank you, a very informative article on Banknifty, it covers all aspects of nifty option trading. And that what we believe in — An open environment where our readers can ask us anything they wish to. Reply Hey Kunal I am really glad that you like the work. Also, apart from weeklies, there are long term options on index and stocks are also available for trading to take big time positions by paying loss cost. Also, ETMarkets. Stock Analysis.

Read More Heartful thanks to you for sharing such words. Can i buy back my short position at 0. In the present case one can create a short straddle by selling the call as well as put option. The trader purchases an out of the money put option and at the same time writes an out of the money call option. Thanks to the forex trading strategies that work 2020 52 week high and low screener thinkorswim, her maximum effective gain rises to a share fromwhich happens how to copy trades in td ameritrade futures trading futures position 20, Hope you do best indicator for forex trading backtesting data stocks take me wrongly. Reproduction of news articles, photos, videos or any other content in whole or in part in any form or medium without express writtern permission of moneycontrol. Chart readers are always at advantage as they can see other important aspects that is not considered while evaluating the pricing of the premium. Buying a call if you are bullish or a put if you are bearish works only if the market moves in your favour sharply. In some places you have talked about call, put, buying and writing in a single breath. Time to Think……. For example, the very last blue line represents the weekly expiry of June 16th, while the pink line before it represents the closing position of the market on Tuesday i. Yes, you can buy your short position 0. Datsons Labs Ltd. Suppose, you shorted call option at premium of rs.

Sir, please excuse me. Thanks for writing and sharing your thoughts in length.. Reply very helpful article Reply Dear Sir, Thanks a lot for explaining options in an easily comprehensible manner. Selling Options While when you are selling an option you will be receiving the premium price for giving the buyer the right to buy the option which includes the time value which usually works in the favor of the sellers of the option contract. Also, some times during the expiry day which will happen once or twice every month, market will be near the major resistance or support levels. So is it possible and if yes so how? Please read the Risk Disclosure Document prescribed by the Stock Exchanges carefully before investing. Wondering ….. Historically, bank Nifty has seen twice the volatility of the Nifty and hence hedging becomes a little more complicated. Reply Comments Cancel reply. Get get on with our shoes and get ready to design ideas, strategies to make money from these weeklies.

This will generate a very small profit but will put the probability of working right in your favor. Reply Dear Sir, I want to know about options selling. So, atleast you will require these days to carry overnight position in options selling. Based on event timetable and news flows, one can more precisely define a spread between two bank Nifty weekly contracts to profit from the spread. If volatility is high and a trend is underway, wait to see the market movement in early hours on the day of expiry to take any positions. This will alert our moderators to take action. I am amazed reading your thoughts.. Therefore, always first analyse and give complete importance to the understanding the what the bank nifty is expected to do in the next few hours to day to decide what is best strategy to adopt to trade bank nifty weekly otpions on or near expiry. I have never come across a better article on the internet about options selling. If even after reaching resistance market starts to show increase in open interest in puts expect market to keep going with current up trend. The provisional closing rate of a 20, call on Monday was a share 20 shares make a contract , while the sale of the 20, and 21, calls fetches the trader 1, a share based on closing rates Monday. And, the bank nifty index expired so the call will become worthless i.