If I am doing Credit Spread (Bull Put Spread or Bear Call Spread)on Bank nifty what is the ideal Gap between Sell And Buy
For Nifty - 150 points
Bank nifty - 500 points
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Thank You Nidal For replying .
for intraday nifty 150 will be close ,there will be no profit, I am observing in Bull put spread 400 point gap and in bear, call spread 300 points is a good gap to maintain, it will give and 1/2 loss & profit against naked Buy
For bank nifty iam not sure yet
For intraday, don’t go for hedge.
It is very difficult to keep the stop loss in naked buy or sell
For banknifty i usually take 2500 for a week. I dont do intraday because its very risky.
Enter the sell side when premium is relatively high…