How to trade banknifty options on expiry day.Bank Nifty weekly option Expiry strategy

Saturday, 21 August 2021

 

How to trade banknifty options on expiry day.Expiry Trading Strategies – 3 New Methods

 
Jun 07,  · All options on expiry day are near Delta of 1 or 0. All Out of The Money (OTM) options have near ZERO Delta and all In The Money options have Delta near 1. Just like Futures delta. So if you buy on expiry day Call if Nifty is at , then if Nifty goes up 10 points you will make a profit of 10 points just like Futures buy, and if Nifty falls by 10 points you will lose 10 points just like Futures s: Dec 26,  · Nifty And Bank Nifty Option Trading on Expiry Day. December 26, by Bramesh. Below are the Nifty and Bank Nifty Weekly Options Trading Levels for 26 Dec. Options are for 26 Dec Monthly Expiry. Sep 10,  · Bank Nifty weekly expiry options has been introduced in the year , since then many traders began to speculate with option trading especially on expiry days by buying OTM options with an expectation of seeing huge gains. We have analysed the historical data to find out how Bank Nifty moved on expiry ted Reading Time: 2 mins.

Execution Process.How to Trade Bank Nifty Options on Expiry Day

 
 
Aug 15,  · So, if you have bought hundred lots or units ( x 40) of bank nifty weekly call option on the day of expiry for Rs. 3 when bank nifty index is trading @ say and market settles @ Then the total profit from the trade will be () – 3 = Rs. Because during the last half hour of trading, when market Estimated Reading Time: 14 mins. The objective of the webinar is to help the participants select the right data points for option buying and ignoring likely range expiry study of bank nifty weekly expiry from may will add to the knowledge about how each week Thursday expiry planning of trades during the morning and the evening sessions on Date: Mar 28, Dec 26,  · Nifty And Bank Nifty Option Trading on Expiry Day. December 26, by Bramesh. Below are the Nifty and Bank Nifty Weekly Options Trading Levels for 26 Dec. Options are for 26 Dec Monthly Expiry.
 

 

How to trade banknifty options on expiry day.Warning: 5 Traps To Avoid When Trading Bank Nifty Weekly Options on the Expiry Day

 
Jun 07,  · All options on expiry day are near Delta of 1 or 0. All Out of The Money (OTM) options have near ZERO Delta and all In The Money options have Delta near 1. Just like Futures delta. So if you buy on expiry day Call if Nifty is at , then if Nifty goes up 10 points you will make a profit of 10 points just like Futures buy, and if Nifty falls by 10 points you will lose 10 points just like Futures s: Sep 10,  · Bank Nifty weekly expiry options has been introduced in the year , since then many traders began to speculate with option trading especially on expiry days by buying OTM options with an expectation of seeing huge gains. We have analysed the historical data to find out how Bank Nifty moved on expiry ted Reading Time: 2 mins. May 24,  · Money Management for Expiry Day Nifty Option Strategy. Do not trade more than 2% of your capital in this strategy. Because there will be no stop loss. Your maximum loss in this expiry day nifty option strategy will be limited to the premium you are paying for the option. You can also refine Nifty expiry levels using the 50 point open interest values like Reviews:
 
 
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Bank Nifty weekly option Expiry strategy – Algo Trading in India |
Warning: 5 Traps To Avoid When Trading Bank Nifty Weekly Options on the Expiry Day
Strategy – THE SHORT STRADDLE
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Lots of people ask me if I have any strategy to trade and make profit on expiry day. I ask them a counter question — why you want to trade on expiry day only? Most of them have no answer. However some say because options are dying expiring that day why not benefit from this situation? At that time do you think about making money using him or you try your best to console him and save him?

I hope you get the point. Intrinsic value is the distance between the spot price of the stock and the strike price of options. For example if Nifty strike price is , then strike call option will be near zero by 12 pm and call option which is In The Money will be near by 12 pm.

All options on expiry day are near Delta of 1 or 0. Just like Futures delta. So if you buy on expiry day Call if Nifty is at , then if Nifty goes up 10 points you will make a profit of 10 points just like Futures buy, and if Nifty falls by 10 points you will lose 10 points just like Futures losses.

Can you see the risks involved? Assuming Call is sold when spot of Nifty is at If Nifty comes down 10 points the seller will make a profit of 10 points and if Nifty goes up 10 points the seller will lose 10 points.

What if Nifty goes up and reaches at 3. The seller of option will lose points. Of course since there is not much premium in Out of The Money Options very rarely traders trade them on expiry day. The sellers do not get much money to sell OTM options and they think risk is too much for such a low payment so they do not sell OTM options. The problem is in spite of all these risks people keep searching Google for expiry day trading.

They hear from some source stories that someone is trading on expiring day and making good money. The problem is no one wants to know who that person is or exactly what they are doing. And if there is any truth in whatever they heard. Since they do not know the source and therefore do not know how they are trading — they Google it to try to find out. Sellers of options want to make quick money on expiry day. So they think if they sell both ATM Call and Put options early in the morning and if Nifty expires within points they can easily make points in one day.

Agreed if they are correct they will make. So if Nifty expires within 50 points range either above or below they will make a profit. What they forget is that on the expiry day a lot of movement is seen. This is very normal as all derivative traders are closing their position. The movement starts after 12 pm when these people come into action. So even if they make a profit in two expiry days, the third expiry day may see a huge move and all they made in last 2 months is gone plus markets will take away some principal as well.

Where is the profit? Note that this is the most popular trade on expiry day. Hope after reading this you know the risks involved and will not trade this. They think if they can get rich by trading just one day in a month then why do all the hard work for the full month?

They forget the simple fact that no one in the history of trading has ever become very rich by trading on the expiry day. Another fact for those who think on these lines — do you think you will become extremely rich by trading working just 12 days in a year?

How can that logic be justified? Stock market trading is a business. Name me one person who has become extremely rich in any business in the world by just working 12 days in a year? Is that possible?

In fact business owners work more than people who are doing a job because they know the more they work the more money they can make.

Which is a fact. People who chose to work hard and not take lazy route to success are the ones who actually archive success. May be it takes a few years but at least they succeed. People who take the lazy path to make money never see success ever, not only that they are the ones who are the most stressed people in this world , because they see their hard working friends earning more than 10 times than they do within a few years and they are nowhere near them. This gives them stress and jealously.

But dude you are responsible for your failures as you chose the wrong path to achieve success when time came to decide the path. So blame yourself no one else. Frankly this is my personal experience. When I was a lazy person and was looking to make easy money without working hard through stock markets I lost all my savings in three years To survive I had to take a 1 lakh loan.

My wife who was heavily pregnant at that time told me the truth — God is punishing you for being lazy and still trying to make money taking short cuts. You are responsible for this situation, no one else is.

However you still have time, you are young just chose the correct path to make money. Start working hard from today onwards. And man how correct she was. I thank her for changing my life. The very next day I started researching and reading about stock markets, options and futures trading, managing finances, mutual funds etc as well as trying to improve my job skills by reading related books.

The idea was to improve my skills at my current job plus make money from investing in stock markets as well. The result? I got a promotion within 3 months in my job. Salary doubled. Started investing in four of the best mutual funds of that time within 6 months through the SIP route.

Within 2 years I bought a car and a house. Can you see what I destroyed in 3 years through laziness, I got back 10 times that in 2 years only. So do not think hard work takes too much of time to pay back. It only takes a few years and your life can change. If you chose the wrong path to succeed you will never see success for years.

In fact you may end up destroying whatever you had done all these years and then regret your decision for the rest of your life. Yes I do get calls from people aged above 50 who have destroyed their wealth trying to make too much of money and taking too much of risk in stock markets without knowing what they are doing. The result is obvious some are sitting at a loss of 40 lakhs and some more — 2 crores. If you are young and reading this please do not try to take any short cut to make money it will never work and will take away whatever you have made till today.

Do not think that you are an exception — you are not. In Gods eyes everyone is same — it does not matter you are rich or poor the almighty will punish you if you take the wrong path. Name one person who took short cuts to make money in any business in this world and is living a rich life today. In real world such a person does not exist and will never exist.

So how can you be one? The worst part is these people who are above 50 and lost too much money left their high paying jobs to trade the stock markets and lost everything they had made. The problem is since they are now near retirement age they will not get a job — so everything they achieved in life is gone. Please do not be in that situation when you are I get too many calls from young people who want to leave their jobs and trade full time to make money.

I do not understand why. After all you got this job after a lot of years of studies and hard work — so why leave it to live a lazy life? Can you not trade while on a job? Yes you can, so why leave it? Even I had a job while I was trading. So basically I was willing to work hard and gain knowledge because of this my life improved drastically. Think about this — I also started this website in to help traders get some knowledge and imagine the time I had to work.

Almost 12 hours daily. Even while traveling I never wasted time — I had books in my bag so that I could read them while in a metro. When you chose the right path — right things starts happening automatically in your life. If you chose the wrong path — wrong things will start happening automatically. I hope it is now clear that risk reward ratio is not good in expiry day trading so I request you to avoid it.

Trade with knowledge and have patience while trading. No person on this earth has ever become rich overnight by trading though many have lost their fortunes trading aggressively overnight in few months. But traders who are patient and follow proper risk-management techniques and giving themselves time to make money are actually making money.

Now you chose which path you want to travel. One bad speculation can take away months of profits and this will go on for years.

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