BANKNIFTY Shorting strikes using Vix ❗
Hi traders 😊...................
🛑 Shorting strikes purely based on India vix volatility index
🛑 India vix volatility index helps us to identify short strangle strike's
🛑India Vix closed at 16.74 which is fall by 2.73% , which tell us that Both CE and PE strikes were declining
◽ Call premium were not increased as expected due to decrease in volatility
🛑 ( Caution it doesn't include any sentiment ie . Global or economical or news and avoid Shorting when there's impacting news were came out)
◽Indian Vix volatility index works best in range bound market and helps option sellers
🛑You can also short only side either CALL or P
PUT and follow respective Stoploss points As per below (Personally suggestion Sell CALL)
🛑 Short Call
Now clearly we get strike from india vix volatility index to short ie .37900 / 38000 on CALL side (we can see in option chain data available in nse , there is lot of short positions were added at 38000 Call side strike)
◽Exit from short Call position when market breakout 38000 resistance zone
◽ Target will be 37000 book your profit at this level
🛑Short PUT
◽Another one in downside we get one strike ie . 37200 on PUT side
(these levels were exact support and resistance in option chain and also in chart analysis you can checkout mine market analysis fro Monday )
◽ maintain Stoploss for this ie.37200 / exit from this position to restrict your Stoploss
◽Target will be 38100 / book your profit at this level / exit from short PUT position
◽we can clearly observe that market maybe trade between this range
➡️ If sold both strikes (or if you do short strangle)
Key important you must have to follow
◽ Exist from one position if breakdown/breakout happens and keep it another side or another position until reach the target
◽ If breakout happens at (38000)exist from Position of CE or buy back CE or close CE selling position
Then keep short side PE to reach Target of 37000
◽ If breakdown happens (at 37200 ) then exist from Position PE or buyback PE or Close Position PE
Then keep it selling CALL (CE) until reach Target level 38100
🛑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 😊
🛑 Shorting strikes purely based on India vix volatility index
🛑 India vix volatility index helps us to identify short strangle strike's
🛑India Vix closed at 16.74 which is fall by 2.73% , which tell us that Both CE and PE strikes were declining
◽ Call premium were not increased as expected due to decrease in volatility
🛑 ( Caution it doesn't include any sentiment ie . Global or economical or news and avoid Shorting when there's impacting news were came out)
◽Indian Vix volatility index works best in range bound market and helps option sellers
🛑You can also short only side either CALL or P
PUT and follow respective Stoploss points As per below (Personally suggestion Sell CALL)
🛑 Short Call
Now clearly we get strike from india vix volatility index to short ie .37900 / 38000 on CALL side (we can see in option chain data available in nse , there is lot of short positions were added at 38000 Call side strike)
◽Exit from short Call position when market breakout 38000 resistance zone
◽ Target will be 37000 book your profit at this level
🛑Short PUT
◽Another one in downside we get one strike ie . 37200 on PUT side
(these levels were exact support and resistance in option chain and also in chart analysis you can checkout mine market analysis fro Monday )
◽ maintain Stoploss for this ie.37200 / exit from this position to restrict your Stoploss
◽Target will be 38100 / book your profit at this level / exit from short PUT position
◽we can clearly observe that market maybe trade between this range
➡️ If sold both strikes (or if you do short strangle)
Key important you must have to follow
◽ Exist from one position if breakdown/breakout happens and keep it another side or another position until reach the target
◽ If breakout happens at (38000)exist from Position of CE or buy back CE or close CE selling position
Then keep short side PE to reach Target of 37000
◽ If breakdown happens (at 37200 ) then exist from Position PE or buyback PE or Close Position PE
Then keep it selling CALL (CE) until reach Target level 38100
🛑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 😊
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