I am trying to create below strategy for next week expiry (13 APR 2022) from today. Nifty Spot is at 17800. Margin in Account is 60k.
I tried buying hedge position for my iron condor but it’s breaching OI Limit for weekly expiry.
Is there any way to execute the below iron condor?
I tried buying hedge position first and then short position.
Date 6/4/2022
Particular Value
Underlying Nifty
Spot Price 17800
CE Strike, Sell 18150
PE Strike, Sell 17450
CE Strike, Buy 18400
PE Strike, Buy 17200
CE Premium received for short 52
PE Premium received for short 65
CE Premium paid for Long 26
PE Premium paid for Long 18
Net Premium (Credit) 73
Max P&L
Lower Breakeven 17377
Upper Breakeven 18223
Max Loss 177
Nifty contracts allowed for trading
Current Week -NRML:All strikes allowed MIS:All strikes allowed
Next Week -NRML:17500 to 18500 MIS:16250 to 19800
Next Month-NRML:17500 to 18500 MIS:16250 to 19800
As the options you’re trying to buy are outside the allowed range, you will have to first take short position and then buy options. We allow buying options at strike price for hedging purposes if you hold a short option position.
I was going through article from option alpha regarding selecting strike prices for iron condor based on volatility.
I was searching for indicator which will show probability or range of scripts for 1st std deviation ,2 nd std deviation.
I find Bollinger band which is giving range script where the probability of price remain in range in 66% or 1 st standard deviation from Karthik’s post.
Pls let me know if there is any indicator which is showing range as below pic in chart.
