Hi all,
Please tell me the shortcomings on the below option strategy:
Its an intraday bull call spread and put bear spread strategy (executing both)
Bull spread:
Buy the liquid most bull spread (stock options) for the best performing sector of the day
Similarly simultaneously buy the bear spread too.
The above strategy is intraday and looking in terms of income genration:
For eg.
Say Financials are looking strong and SBI is the liquid counter
Buy ATM SBI call and sell 1 strike higher SBI OTM call
And say Pharma looks the weakest and Dr. Reddy is liquid counter
Buy ATM put and sell 1 striker lower ATM put
All the four contracts to be entered into at the same time (almost) and squared off say at 500 to 1000 Rs profit or at EOD.
Please tell me the shortcomings on the below option strategy:
Its an intraday bull call spread and put bear spread strategy (executing both)
Bull spread:
Buy the liquid most bull spread (stock options) for the best performing sector of the day
Similarly simultaneously buy the bear spread too.
The above strategy is intraday and looking in terms of income genration:
For eg.
Say Financials are looking strong and SBI is the liquid counter
Buy ATM SBI call and sell 1 strike higher SBI OTM call
And say Pharma looks the weakest and Dr. Reddy is liquid counter
Buy ATM put and sell 1 striker lower ATM put
All the four contracts to be entered into at the same time (almost) and squared off say at 500 to 1000 Rs profit or at EOD.