Execution Bull call spread on BankNifty April series

Now BankNifty closed at 16278. Due to Global cues more upside expecting on Nifty and Bank Nifty.

I want to execute Bull Call spread on Bank Nifty, Spread is nothing but combination of orders . We can place spread orders on perfect trend with minimum risk and maximum profits.

Short a BankNifty 15600 call at 724.
Long a BankNifty 15500 call at 820.

Total Investment is 95
maximum Profit Potential is 4.33%
Maximum loss Risk is 95

If Return unchanged we can get profit of 4.33%

INDEX OPTIONS : NIFTY Vs BANK NIFTY

Trading on Index Options increased in Indian stock market now a days.
In olden days everyone loves Nifty Index Options because of It's volumes.
When Nifty lot size reduced to 25, then traders looking for alternate. I found Bank Nifty always greater than Nifty. Only problem is volumes, Bank Nifty trade with low volume compare to Nifty. But price movement is always better than Nifty.

Pay per lot traders are not gaining after Nifty's lot size decreased to 25.

Traders who trade with 4 lots on Bank Nifty index options can easily earn 500 to 1500 with sl 500 on

my blog check here

Nifty :

High volumes
lot size : 25
Index movement 30-100 points up or down side.
30 points up or down is equal to premium decrease

Bank Nifty:

Low volumes compare to Nifty
lot size :25
Index movement 50-200 points up or down side.
quick trader always win on Bank Nifty because price movement always faster than Nifty.
Banking stocks are evergreen in Indian stock markets.

Asian markets and SGX Nifty update

Japan markets shut today on account of Health and sports day
KOSPI down -50% now at 1931.20
Straits Times 3211.60 down -0.38%
Taiwan Index 8778.81 -2.09%
SGX Nifty 7825 down -0.65%
Brent crude down -1.86%
NYMX CRUDE down -1.19%

TOP 5 MISTAKES OF OPTIONS TRADERS

1. Buying OTM(out-the-money) calls
2.Entering into Spread trades when 1st trade in loss
3.Ignoring premium depreciation at expiration
4.holding buy calls or puts till expiry
5.Trading in low volume options

NIFTY SHORT STRANGLE

                        SHORT STRANGLE

THIS IS VERY SIMPLE AND EASY  OPTIONS STRATEGY WITH 100% FIXED

MONTHLY INCOME GENERATED STRATEGY.

NOW NIFTY@6715

• SELL NIFTY6300PE

• SELL NIFTY7300CE

IF NIFTY CLOSE BETWEEN 6300 AND 7300 AT THE EXPIRY ,THEN THE BOTH

PREMIUMS WILL BE ZERO YOUR PROFIT IS 100%

WHEN I GO FOR SHORT STRANGLE?

IF YOU EXPECT MINIMUM OR LOW NIFTY INDEX MOVEMENT

SELL 500 POINTS BELOW PUT AND ABOVE CALL FROM CURRENT LEVELS

BEFORE 45 DAY EXPIRY 

TRY TO EXIT AFTER 15 DAYS TO GET MINIMUM 40% PROFIT BOTH SIDES.

AFTER 15 DAYS IF YOU FIND STRONG BULLISHNESS IN NIFTY EXIT 7300CE

AFTER 15 DAYS IF YOU FIND STRONG BEARISHNESS IN NIFTY EXIT 6300PE

IN 15 DAYS THERE ARE 4 WEEKEND HOLIDAYS WHICH KILLS OPTIONS

PREMIUMS

DO PAPER TRADE BEFORE ENTER.. 

WE CAN APPLY TO STOCK OPTIONS ALSO...LIKE

TATAPOWER,NMDC,BHEL,MMTC etc.....  

.

OPTIONS STRADDLE STRATEGY

OPTIONS STRADDLE STRATEGY

Buy both Call and Put with same strike price and same expiry

  Example: 

 Buy May6800CE@ 315

 Buy May6800PE@ 262

Advantages

• Limited Risk
• Unlimited Profit

Dis-Advantages

• Premium Decay when market neutral

CREDIT SPREAD

Credit Spread is limiting the risk of options trader

It is Combination of buy lower strike price derivative and sell higher strike price derivative with
same expiry date.

EX:     1.  CREDIT CALL SPREAD


               SELL 6200CE@ 132 X 50 =  Rs.6600

                 BUY 6300CE@    74 X 50 = - Rs.3700

                                     NET CREDIT OF Rs.2900


         2.CREDIT PUT SPREAD


               SELL 6400PE@  150 X 50 = Rs.7500

               BUY 6300 PE@    92 X 50 = Rs. 4600

                                      NET CREDIT OF Rs.2900