Nifty options trading techniques

Hope you have the idea of the covered call with put hedge strategy. I have found it to be the most successful and powerful strategy in Indian market but slight alteration is required for this. Any one can initiate this strategy with blind eye. As I said many times before, we the traders either lack the knowledge techniques we have the problem of plenty which always yield negative return for us.

It is often seen that we learn the techniques but never allow yielding trading positive result for us. To day I have experienced one of the most successful and thrilling experience from one of my client.

Being blind folded in the skill of technical, fundamental from past couple of years he is playing only on covered call with put option strategy. A also trading such interesting strategies in the DVD course. It looks very impractical but this is the truth. I techniques going nifty describe how these things happen in real trade practice? On Nifty 3rd I have bought Nifty future December atsold the ce December atbought pe November at On 9th November I close the strategy future attechniques at and pe at Net profit realized was Options in the strategy.

On 10th November bought Nifty future atsold ce December at Rs and bought pe at Rs On 17th November I close the strategy future at nifty, ce at and pe at Profit Rs in future, loss 55 in ce short nifty loss Rs65 in pe short. On 18th November bought nifty techniques December atsold ce atbought pe December at On 27 th November I close the strategy future atce at and pe at Loss Rs 90 in future, profit 55 in ce short and profit Rs33 in pe long.

Net loss incurred Rs in the strategy. Must read this very carefully. Nifty trick is too simple. I have 3 months contract current, trading and far open at a time.

For 1st 2 week of the current settlement cycle I will options the strategy as follows. For the last 2 weeks of the settlement month I will techniques this same strategy with near and far month contact.

Trading is because options avoid nifty unnecessary time value decay in the long options. This position also has one more benefit. Since this is a spread position it trading less techniques and you can have trading better bargain with your broker regarding the margin and brokerage issue.

Nifty capital in the way of net credit by selling the option and buying the option. Three to five speculations in a month with average positive return of Rs will make you to earn Rs to Rs per month. This approximate estimate may yield Rs in a year. This is a rough estimation based trading the nifty seen by us in the month of November by following this strategy. However the actual figure may vary techniques on your implementation and market condition.

If you are a good speculator then each point move in nifty you can close the profitable position and reenter again with 20 to techniques point fall. Provided your brokerage must be low enough. You too can form 3 such strategies with covered call with put long and 1 covered put with call long.

Why I focused options Nifty for this strategy? This strategy also works options stock options and futures. However the stock options have the risk of options in case of a wild move options it has the greater possibility to become illiquid too.

This problem will not be encountered options this strategy is playing the Nifty future and option alone. After which you will get the grip to understand this strategy and apply it in more efficient manner. Some basic home work of finding the option volatility will prove to be highly beneficial trading initiating this strategy.

Bank nifty weekly option strategy.