Expiry Game of Bank Nifty & Nifty


#1

Hello friends as 4 days long weekend and nothing to do so I wish to start a new forum .

All are welcome to discuss their expiry experience and tips to capture good amount in quick time.


#2

On expiry I try to take directional trade in BNKNIFTY fut and insure using OTM optins which sells for very cheap.

Example a day before expiry I shorted 120 qty BNKNIFTY and bought OTM calls for 10k. Next BNKNIFTY 180 points down and got about 5k profit in the morning. It was a safe trade :slight_smile:

Also never take BTST trades without hedging. It can go very wrong speaking from experience.


#3

Nice to see as you now a professional trader bro…
:slight_smile :slight_smile:
My experience is slightly different regarding btst but for now I wish to share some of my experience in expiry trade…
On bank nifty weekly expiry as I place order for eg 24500 put when bank nifty at 24450- 24500
At for eg 20 rs and it is trading above 35 and call order of 24500 at the same ratio of 40 50 % down what ever the premium trading…
At a point one order will get triggered definetly as per my experience as soon as order triggered place the sell order at double … Like bought at 20 and sell at 40 … If your sell order triggered then definitely your buy order of call or put which is pending will triggered…
Again process of buy and sell for 2 three times and pocket good amount to home…

Personal experience worth a try on expiry…

Timing for this exercise is 130 pm to 230 pm on expiry day.
After that most of the time two possible situation…

  1. index move any direction divisively… And expiry strike decided…
  2. index expiry silently and eat all premiums…
    :smile: :smile:

#4

Yes It works on volatile and range bound days like yesterday.


#5

Right bro 7 out of 10 expiry are both volatile and range bound…
:smile:


#6

I tried straddle or starngle on BN Option 3 times in the last 2 months. Usually after 12 and i tried covering before 2.25pm ( bought for 40k … max risk 12k … ).
Twice i made loss and once i made minor gain ( 30pt loss , 15pt gain and 10pt loss last time ) . These days premiums are quite high.

Did some backtesting , this startegy seems to be profitable 4 out of 10 times . To breakeven BN needs to move 80/90 points from our level.
My plan is to buy straddle or starngle if BN is 100pt above maxpain level.

Planning to try this again after the next result season.


#7

Thanks bro for sharing your strategy…
Some doubt came in my mind…

  1. you play straddle of at about 12 and cover it at 230 I guess you feed writers some amount. Of course u too a writer :wink: but while buying I said. With my experience 10 rs premium melt to 3 or 5 ?? On both the side…
  2. strangle is a good strategy to play in highly volatile market … But when to cover simultaneously as premium move very fast at 230 . :slight_smile: and gain of 10 point may change to loss of 20 points… :smile:

#8

On this Wednesday, i sorted OTM call of BN around 1 PM and booked profit of 4k by 3:05.
Try to find out safe strike to short based on OI.


#9

bro…
i decided to try these buying strategies on expiry after seeing you :smile:
but i will try only if i am in pfts from other trades …
i have done few expirt trades in nifty long back like 3.4 years back and was not profitable … this STT is big thing which works agaisnt trading on expiry day

  1. ya bro … i will try to narrow my buying window … i tried seeing where OI peaks and try to initiate a trade , need to buy as late as possible … i have other thing in my mind , like buy it when intraday volume comes
  2. initiating the trade is also a problem … as you said , price moves so fast … one thing i am sure about it on expiry trades are we should buy at the money or slghtly outside … buying OTM is not feasible

#10

@sushil_sirari1 Bro I assume you have got capital enough to short a lot of options. Will you consider shorting far OTM options and finance it for buying otm or itm options?


#11

Bro I shared one of my strategy to play game of putting orders of call and puts at 40 50% down of same strike… :smile:


#12

Slightly outside is also dangerous after couple of hours of market opening.


#13

Bro still I scared to sell otm options … Because I have made profits with small amounts. and selling option may change the game for me … Like I ate margin trigger of my fellow writers they may ate mine… :smile: :smile:


#14

Never sell naked options always hedge it.

Like let’s say if you short Nifty 9300 puts for 14 Rs x 150 qty then hedge it by buying 9700 put at around 30 rs x 75 qty. You will be in loss only if nifty makes major move downside but you can always adjust by buying more puts or shorting the nifty itself.

Anyways as long as you are doing well with your strategies that’s all there is to matter :slight_smile:


#15

Bro I want to develop a nearly zero loss strategy in options … @VelmuruganSengottai is a genius in making good strategy and we might learn a lot from him … If a strategy works 7 out of 10 times is best … You are also developing some strategy I guess … :slight_smile:


#16

Sometimes I think of buying far OTM calls and puts for like 10k each and checking like two to three days later if I am a millionaire or not yet :slight_smile: :wink: but I know it doesn’t work like that it seems like bear and bull market is over and there are alot just range bound days ahead, I am ofcourse talking about the Index only.


#17

Yes bro range bound and boring days are ahead… that is the reason I want to develop some new strategy … :slight_smile:


#18

i tried soemthing new in condors and it actually gave -ve returns in the last 2 months :frowning:
usually if we have surplus money , net sell startegies are the best to make consistent returns

i am planning to try selling options for intraday in BN on friday to tuesday ( intaday time decay ) without hedging … i tried earlier but net results are inconclusive for me
now i completed my own app exclsuively for traidng options using kite apis … buying/selling mutilple contratcs simultaneously will be easier


#19

Bro Karnataka election in may … We might see some good action in may I guess…


#20

If BJP wins it I am going home with a lot of calls and if not then taking puts home. It is important because I don’t think BJP has a lot of support in south.