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If you use good MM and are relatively sure about the trend then can also employ these kind of spreads which have inbuilt hedge. This is Short 26500CE and long 5 26700CE. 2 relatively safe signals of the day gave around 800+ points. The Initial risk which was also the maximum risk was 50 points. Position may or may not be squared off at 3:25 to lock in profits. (now 50 points risk is quite acceptable in Bank Nifty). 50 points mean Rs.2000 and 800 points mean Rs32000. A RR of 1:16.
@nurav, based on the excitement you have shown in calculating the profit and loss, I can easily presume that you are new to trading. I dont want to discourage you, but if it can help you avoid blowing up couple of trading accounts I will be happy and you will be thankful to me later..
For all new traders it is very important to understand the following points:
1. There is no easy money in trading.
2. Rewards are directly proportional to Risk.
3. If any strategy seems too good, it unsually isnt.
4. If someone says he has a strategy which gives high rewards with low risk, its a red flag..run away from him as far as possible it is clear that the person has not traded the strategy enough.
5. Success in trading requires hard-work, discipline,confidence and patience to stick to 1 or atmost 2 strategies and not hopping systems. A given strategy may not work in all situations but if you keep hopping systems then you can never master any strategy.
Now coming to the Banknifty Option spread trade example you have mentioned, it is not a low risk strategy, in this you are buying out of money call options and sponsoring it with ATM/ITM call options.There is no clear rationale for doing this, one reason to take this trade could be that one is super bullish on BANKNIFTY as this trade will start making profit only when the price moves above 27900, if the price stays below 27500, then you can lose a max amt of 200-Credit from Short 27500 + 4 * debit from Long 27700. There are much better option strategies one can apply to trade bullish opinions, even a simple ATM call option buy trade can give you a better returns. Trading option are more complex than trading stocks, hence always try to plot the strategy pay-off diagram first to understand the risks before placing the option trades.