Entry time : 9.30 - 10
Exit : Upto you
Sell weekly ATM CE & PE at almost equal price
For ex : Sell Nifty 17250 CE at 50 and Nifty 17250 PE at 48 so it will become short straddle
Buy monthly ATM or near ATM CE & PE at matching price (5-10 points diff should be fine) as hedge
For ex : Buy Nifty 17250 CE at 150 and Nifty 17300 PE at 155 so it will become long straddle.
Weekly Short straddle + Monthly Long straddle
• If you feel slightly bullish/bearish then no adjustment needed
• If Nifty moves 50 up or down and sustain then just simply roll up or down half of qnty and keep rest of the quantity. If market goes up or down further then roll up or down rest.
• If Nifty moves one side or about to breach BEP then add equal amount of lot. This can balance tested side. For ex: If I bought 17300 CE 4 lot as hedge then add 4 lot so you will have only one side risk . Note: Remember to keep SL at cost price (only for additional lot bought)
2.2 L for 4 lot
Adjustment requires additional capital upto 1L
Note : High risk high reward strategy, please don’t execute until you fully understand. Kindly do paper trading or backtest.
RR : 1:1
POP : 45-55%
The instrument that I trade in are Nifty (NF) options
Thanks to @AdityaTodmal @niki_poojary for contributing in making this
How to set your charts:
Lets try to understand what to sell when 50EMA, VWAP & RSI works in different scenarios
What options to sell and how to place the SL
Important to have a birds eye view when trading in NF options as many stocks influences its movement
Yesterday sell 14700 than 14600 than 14800 market come down sell sell 15 k call going up sell 14400 put Getting some profit buy protection 14450 pe 14950 ce now u know ur max loss now wait or do adjustment with sell upar side ce or pe it\u2019s practical knowledge not books knowledge pic.twitter.com/J5sPGClVUZ— itrade(DJ) (@ITRADE191) May 16, 2021