What is the best strategy for range market , bullish market ,bearish market? And my main doubt is if we are not able to predict the market movement .what will be the best strategy?
Trading is not a predicting game…you have to follow the market movements…and if u are not sure whether the market will bullish or bearish or move sideways…then the best thing to trade in options…with options u can create range…to be profitable…
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@T2V_Trader
Note : You should be ready to do adjustments if your view goes wrong
BULLISH STRATEGIES
- Bull Call Spread
- Bull Put Spread
- Call Ratio Back Spread
- Bear Call Ladder
- Call Butterfly
- Synthetic Call
- Straps
BEARISH STRATEGIES
- Bear Call Spread
- Bear Put Spread
- Bull Put Ladder
- Put Ratio Back spread
- Strip
- Synthetic Put
NEUTRAL STARTEGIES ( Sideways market )
- Long & Short Straddles
- Long & Short Strangles
- Long & Short Iron Condor
- Long & Short Butterfly
- Box
If you don’t have any view there are two strategies I use
- Batman Trade Using Ratio Spreads and Ladders
- Batman Trade With Broken Wing Butterflies
I think these are the best strategies to use if you have no market view
If you don’t know the two strategies I gave in no market view , please give me a reply I will explain them .
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I am very much interested to learn about these two batman strategies. PLZZ explain sir.
Batman Trade With Broken Wing Butterflies
First open Sensibull option chain or click on the link below for a time saver
https://web.sensibull.com/option-chain?expiry=2020-10-29&tradingsymbol=NIFTY
After opening the page select 29 OCT expiry and enable option geeks ( you can find this just above option chain to your right top )
Now find strike prices of CE and PE with delta value of 0.2 or close to 0.2
In 29 oct expiry 10450 PE (can also take 10500 PE because it also have delta value close to 0.2 ) have delta value close to 0.2 and 11550 CE have delta value 0.2
After identifying these strike prices the trade is as follows
Now sell 2 lots of strike price with delta 0.2 or close to 0.2 (Lets call this strike price delta strike price)
And buy 1 lot of OTM call and put which is 300 points away and buy 1 lot of CE and PE which is 100 points less than delta strike price
In this case ( in 29OCT expiry )
Delta strike price for CE (delta strike CE) : 11550CE
300 points OTM for delta strike is : 11850 CE
100 points less than delta strike is : 11450 CE
Delta strike price for PE (delta strike PE) : 10500PE
300 points OTM for delta strike is : 10200 PE
100 points less than delta strike is : 11600 PE
SO THE TRADE IS :
SELL TWO LOTS OF 11550 CE AND 10500 PE
BUY 1 LOT OF 11450 CE AND 10200 PE
BUY 1 LOT OF 11450 CE AND 10600 PE
The trade looks as follows
you make profit if NIFTY expires between 10368 to 11692
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Batman Trade With Broken Wing Butterflies In simple
In simple if you are confused with delta and other things this is in simple terms
CALL SIDE
Select a strike price on call side (avoid delta ) . Sell two lots of that strike trice .
Add 300 to that strike price and buy one lot of it . Substract 100 to the selected strike price and buy 1 lot . Here we selected 11550 . So we sell 2 lots of 11550CE . Add 300 . So buy 11850 CE 1 lot and subtract 100. So buy 1 lot of 11450CE
FOR PUT
Select a strike price . Sell 2 lots of it . Add 100 and subtract 300 and buy 1 lot of the two strikes
Here we selected 10500PE . So sell 2 lots of it . Add 100 . SO buy 1 lot of 10600 PE and subtract 300 . So buy 1 lot of 10200 PE
Delta value selected 0.2 is optional . You can also select strike with delta value 0.18 or 0.1 or anything . So you can also do this trade as following also .
Or like this
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Batman Trade Using Ratio Spreads and Ladders
This is simple to understand .
Call side
Buy ATM CE strike
Add 200 points and sell the call option.
Add 300 points and sell the call option
Put side
Buy ATM PE strike
Subtract 200 points and sell the put option.
Subtract 300 points and sell the put option
In this case
ATM strike price is 11050 , because NIFTY is at 11050.25
Call side
Buy 1 lot of 11050 CE
Sell 1 lot of 11250 CE
Sell 1 lot of 11350 CE
Put side
Buy 1 lot of 11050 PE
Sell 1 lot of 10850 PE
Sell 1 lot of 10750 PE
The only disadvantage is there is no loss limit if nifty crosses breakeven points .
If Nifty crosses these points should do adjustments .
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Is it applicable in weekly or monthly? And margin required?
Obviously… This is am option strategy with multi leg… It can be happen both weekly and monthly… Margin also required…
Margin is around 70 to 80 thousand if you want to do in NIFTY . If you want to do it for BANKNIFTY it is around 50 to 60 thousand . Better to do it in monthly . Margin given is for monthly . If you want to do it on weekly options avoid 1st week and for 2nd week expiry execute on Friday . ( if you want to execute trade for 2 nd week expiry do the trade on 1st week Friday after 3:00 pm )