This is BANK NIFTY WEEKLY OPTION STRATEGY
It is just trade idea. I am not yet trading it. I have not even tested it.
I request you to take trouble to go through it
and inform me whether this is feasible.
I am not getting clues for CONS. I am not intelligent enough to decipher it.
Please help me.
The strategy goes as under:
Strategy will be initiated on Friday or Monday
Sell both call and put – ATM - current week
Buy next month - monthly option at ATM
As this is weekly option- option will expire on thursday
As trading is done at ATM adjustments are mostly required
Call side:
- Squareup sold call, if underlying(bank nifty) breaches strike price + premium received on call
- Squareup bought call, if premium exceeds initial premium paid on bought call+previous day’s sold call premium
Put side:
Similarly
- Squareup sold put ,if underlying(bank nifty) breaches strike price - premium received on put
- Squareup bought put, if premium exceeds initial premium paid on bought put+previous day’s sold put premium
On expiry day square up outstanding position by 03:15 pm