Learn Hedging Strategies

Hedging Strategies 

The best option strategy, if I think the underlying will not fall, would be

Vinay Bhandari 0 Comments , , , , , , , , , , , ,
bank nifty expiry strategy

The Best Option Strategy

Option strategy that is best if I think the underlying will not fall would be

                   Expiry day Bank nifty option strategy 

 

                            Bank nifty daily charts

<img decoding=” width=”640″ height=”360″ border=”0″ data-original-height=”720″ data-original-width=”1280″>

 

For tomorrow expiry I think bank nifty will be in the range of 33000 to 33900. it will not fall below 33000 for tomorrow only. So which strategies is best for me?

First We Check Options Data

Bank nifty Automated Call Side Data

SELL SHORT BUILDUP UP DOWN 17,375 7,775 -807.05 966.15 32500
SELL SHORT BUILDUP UP DOWN 3,525 2,800 -772.5 895 32600
SELL SHORT BUILDUP UP DOWN 3,175 1,850 -785.7 797 32700
SELL SHORT BUILDUP UP DOWN 8,100 3,000 -774.6 708 32800
SELL SHORT BUILDUP UP DOWN 17,975 12,950 -762.4 622.8 32900
SELL SHORT BUILDUP UP DOWN 136,825 77,650 -746.4 550 33000
SELL SHORT BUILDUP UP DOWN 19,100 15,100 -735.1 476.95 33100
SELL SHORT BUILDUP UP DOWN 27,300 18,575 -714.6 405.15 33200
SELL SHORT BUILDUP UP DOWN 122,375 104,700 -697.75 343.25 33300
SELL SHORT BUILDUP UP DOWN 144,850 111,925 -672.75 287.1 33400
SELL SHORT BUILDUP UP DOWN 758,000 413,575 -646.75 230.45 33500

Bank nifty Automated Put Side Data

32500 52 16.05 -89,825 647,350 UP DOWN SHORT COVERING BUY
32600 59.95 19.25 -2,650 129,475 UP DOWN SHORT COVERING BUY
32700 71.15 24.65 47,325 207,650 UP UP LONG BUILDUP BUY
32800 87.6 33.95 26,600 197,900 UP UP LONG BUILDUP BUY
32900 107.4 46 2,450 135,575 UP UP LONG BUILDUP BUY
33000 135 64.8 -55,425 979,650 UP DOWN SHORT COVERING BUY
33100 154.05 73.45 -8,550 117,925 UP DOWN SHORT COVERING BUY
33200 195 101.95 -33,200 179,000 UP DOWN SHORT COVERING BUY
33300 230 123.5 -23,050 199,700 UP DOWN SHORT COVERING BUY
33400 255.6 133.75 -64,200 165,050 UP DOWN SHORT COVERING BUY
33500 314 174.7 -503,825 540,425 UP DOWN SHORT COVERING BUY
 
 
Option strategy for Bank nifty expiry.
 
Buy 33000 Put @ 130
Short 32900 Put @ 105 (2 lots)
 
 

          Payoff Chart For The Above Strategies
 
No
Strike
Premium
Option
Buy(1)Sell(0)
Expiry
Gross P/L
LOT SIZE
TOTAL P /L
1 33000 130 put 1 35000 80 25 2000
2 32900 105 put 0 34900 80 25 2000
3 32900 105 put 0 34800 80 25 2000
4         34700 80 25 2000
5         34600 80 25 2000
6         34500 80 25 2000
7         34400 80 25 2000
8         34300 80 25 2000
9         34200 80 25 2000
  pls whatsapp 9699646408     34100 80 25 2000
Difference 100       34000 80 25 2000
Expiry from 35000       33900 80 25 2000
lot size 25       33800 80 25 2000
          33700 80 25 2000
        33600 80 25 2000
          33500 80 25 2000
        33400 80 25 2000
          33300 80 25 2000
          33200 80 25 2000
          33100 80 25 2000
          33000 80 25 2000
          32900 180 25 4500
          32800 80 25 2000
          32700 -20 25 -500
          32600 -120 25 -3000
          32500 -220 25 -5500
          32400 -320 25 -8000
          32300 -420 25 -10500
          32200 -520 25 -13000
          32100 -620 25 -15500
          32000 -720 25 -18000
          31900 -820 25 -20500
          31800 -920 25 -23000
          31700 -1020 25 -25500
          31600 -1120 25 -28000
          31500 -1220 25 -30500
          31400 -1320 25 -33000
          31300 -1420 25 -35500
          31200 -1520 25 -38000
          31100 -1620 25 -40500
          31000 -1720 25 -43000
          30900 -1820 25 -45500
          30800 -1920 25 -48000
          30700 -2020 25 -50500
          30600 -2120 25 -53000
          30500 -2220 25 -55500
          30400 -2320 25 -58000
          30300 -2420 25 -60500
          30200 -2520 25 -63000
          30100 -2620 25 -65500
 
 

In the above chart it shows that

Maximum loss is unlimited.
loss start if bank nifty fall below 32700.
 
 
Profit if Bank nifty close above 32720.
Maximum profit RS 4500 at the level of 32900.
But I am expecting RS 2000 approx.
 
Please comment on the best option strategy
 

Other Articles

Disclaimer : 

Blog Provides Views and Opinion as Educational Purpose Only, We are not responsible for any of your Profit / Loss with this blog Suggestions. The owner of this blog is not SEBI registered, consult your Financial Advisor before taking any Position.

Leave a Reply

Your email address will not be published. Required fields are marked *