BANKNIFTY Shorting strikes for expirey
Hi traders 😊
🛑 Banknifty short strangle strikes
🛑 Shorting strikes purely based on India vix volatility index
🛑India Vix closed at 18.84 with gaining of nearly 1.62% over the one day which means premiums were high on both the sides of options . India vix measures the expected volatility for next one year
means Nifty can go up by +18.81% towards upside from today's close to next one year and other chance -18.81% can go down by next one year
🛑If we calculate India vix for day volatility or expected swing in both side for next day the we will get
◽ Here banknifty can go upto max +375 points from previous close 37743 means it may can swing up to hardly 38200 (not exactly add previous close ie.37743 + expected movement points ie. 375)
◽ Or can go down by -370 points from previous close 37743 and it may be swing down to 37300
( Caution it doesn't include any sentiment ie . Global or economical or news)
◽Indian Vix volatility works best in range bound market and helps option sellers
◽ Now clearly we get one strike from to short ie .38200 in CALL side
◽ Another one in downside we get one strike ie . 37300 PUT side
◽we can clearly observe that market maybe trade between this range so I will going to do this
Short strangle means selling OTM strikes of PE And CE
◽ short CALL
➡️ Sell 38200 CE with stop loss of 38150 (simply exist from position after breakout of 38150 with is crucial resistance level I have discussed above it you can checkout by visiting mine profile)
◽Short PUT
➡️ Sell 37300 PE with Stoploss of 37300 (or in other words : exist from PUT position if breakdown of 37300 which crucial support zone and it is pivot point control region. I have discussed above it clearly u can visit mine profile and Checkout)
➡️ If sold both strikes (or if do short strangle)
Key important you must have to follow
◽ Exist from one position if breakdown/breakout happens and keep it another side for until reach the target level
( if want to know Target level set visit mine profile and watchout BANKNIFTY analysis for expirey day I have clearly mentioned Target levels)
◽ If breakout happens at (38150)exist from Position of CE or buy back CE or close CE selling position
Then keep short side PE to reach Target of 38300 (I clearly explained about it visit mine profile)
◽ If breakdown happens (at 37300 ) then exist from Position PE or buyback PE or Close Position PE
Then keep it selling CALL (CE) until reach Target level 37000
🛑You can also short only side either CALL or PE and follow respective Stoploss points
(Personally I will recommend Sell CALL or CE becaut fear market is higher )
🛑Make sure your capital is 1.6 L rupees to execute this strategy
🛑Any doubts regarding on this comment below I will definitely help you guy's
And if I'm wrong please let me know in comment section I will definitely correct my mistake
◽ Thanks for reading and do like it and follow for more and give reputation it will boost mine confidence
◽have nice day 😊
🛑 Banknifty short strangle strikes
🛑 Shorting strikes purely based on India vix volatility index
🛑India Vix closed at 18.84 with gaining of nearly 1.62% over the one day which means premiums were high on both the sides of options . India vix measures the expected volatility for next one year
means Nifty can go up by +18.81% towards upside from today's close to next one year and other chance -18.81% can go down by next one year
🛑If we calculate India vix for day volatility or expected swing in both side for next day the we will get
◽ Here banknifty can go upto max +375 points from previous close 37743 means it may can swing up to hardly 38200 (not exactly add previous close ie.37743 + expected movement points ie. 375)
◽ Or can go down by -370 points from previous close 37743 and it may be swing down to 37300
( Caution it doesn't include any sentiment ie . Global or economical or news)
◽Indian Vix volatility works best in range bound market and helps option sellers
◽ Now clearly we get one strike from to short ie .38200 in CALL side
◽ Another one in downside we get one strike ie . 37300 PUT side
◽we can clearly observe that market maybe trade between this range so I will going to do this
Short strangle means selling OTM strikes of PE And CE
◽ short CALL
➡️ Sell 38200 CE with stop loss of 38150 (simply exist from position after breakout of 38150 with is crucial resistance level I have discussed above it you can checkout by visiting mine profile)
◽Short PUT
➡️ Sell 37300 PE with Stoploss of 37300 (or in other words : exist from PUT position if breakdown of 37300 which crucial support zone and it is pivot point control region. I have discussed above it clearly u can visit mine profile and Checkout)
➡️ If sold both strikes (or if do short strangle)
Key important you must have to follow
◽ Exist from one position if breakdown/breakout happens and keep it another side for until reach the target level
( if want to know Target level set visit mine profile and watchout BANKNIFTY analysis for expirey day I have clearly mentioned Target levels)
◽ If breakout happens at (38150)exist from Position of CE or buy back CE or close CE selling position
Then keep short side PE to reach Target of 38300 (I clearly explained about it visit mine profile)
◽ If breakdown happens (at 37300 ) then exist from Position PE or buyback PE or Close Position PE
Then keep it selling CALL (CE) until reach Target level 37000
🛑You can also short only side either CALL or PE and follow respective Stoploss points
(Personally I will recommend Sell CALL or CE becaut fear market is higher )
🛑Make sure your capital is 1.6 L rupees to execute this strategy
🛑Any doubts regarding on this comment below I will definitely help you guy's
And if I'm wrong please let me know in comment section I will definitely correct my mistake
◽ Thanks for reading and do like it and follow for more and give reputation it will boost mine confidence
◽have nice day 😊
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.