Trading weekly option for profit calculator india
If you already have an open position, in this case you bought a call option. So u will book profits by selling it. If u keep till expiry, this call option will lose time value and if Nifty expirs at , u get 0 as it expires worthless.
Read this throughly alongwith the questions n answers. And by the end of the topic, all your doubts will get cleared. If not, you can ask those to karthik and he will surely help you. Thanks Charles for the answer with an example. Thanks a lot ShreyaDR. I found something very useful in these cases studies. But i see that in first example the Put trade is squared off even before the Strike price reached. Same time the put option and put option having the highest open interest.
Trend and open interest relation establishment: If down trend crossover happens then is a possibility. However, the open interest says maximum support at and max resistance at At the time of drafting this article the nifty future was trading at Hence buying a call option of nifty strike at and put option at in January expiry and selling ce February expiry at 95 and selling put option of February expiry at each one lot will complete this strategy.
Fibonacci and 1SD trend provide excellent opportunity to speculate on the strategy. In the above trend calculation and corresponds to the above retracement levels in the uptrend and and corresponds to the above ratio on the down trend.
Now how to speculate? If nifty given the crossover of then close the put option short February and hold the remaining trades. Many times I have observe price swings in the band of 0. Each retracement from to i. In simple words when nifty touch close put February short and again re-enter short if price fall back to If the retracement does not happen and the price manage to cross the level, then close all the trade in profit and come out.
Similar way you can speculate on the call option short trade of February expiry if the price falls to level. This method of speculation is known as the speculate without compromising with the profit. Ratio call and ratio put strategy together also good at this situation. More on option strategy you will get from my book on Master key to future and option Example: Buy call and put option each one lot and sell put and call option of the same month 2 lots. Yu can speculate in the same way as explained in the above section.
The success in option strategy trade depend on the careful understanding and the accuracy of the trend forecast. To learn and know more about the 1sd trend forecast method visit.
More on smart finance option strategy advanced tool you can find from this link. Learn the option fundamental from our free option course from the following link. Must Read Article a. How to use 1SD level to form option strategy? How to do intraday and positional trade using 1SD formula? Covered call option strategy using 1SD formula d. Multiple bull or bear spread using 1SD e.
How to profit from the cross calendar option strategy? How to make profit in straddle option strategy? Intraday GAV Technique h. Day Trading Made Easy i.