Rajandran R Telecom Engineer turned Full-time Derivative Trader. Mostly Trading Nifty, Banknifty, USDINR and High Liquid Stock Derivatives. Trading the Markets Since 2006 onwards. Using Market Profile and Orderflow for more than a decade. Designed and published 100+ open source trading systems on various trading tools. Strongly believe that market understanding and robust trading frameworks are the key to the trading success. Writing about Markets, Trading System Design, Market Sentiment, Trading Softwares & Trading Nuances since 2007 onwards. Author of Marketcalls.in and Co-Creator of Algomojo (Algorithmic Trading Platform for DIY Traders)

Nifty Options Short Strangle Strategy for March Option Expiry

24 sec read


[wp_ad_camp_5]

 
This Short Strangle option strategy is for medium risk takers who is bullish on nifty and those who believe that nifty will trade in a range between 5200-5900. If you are the one then you can sell 5300PE and 5800CE which is trading at the premium of Rs 103.70 and Rs 30.90. And Maximum Profit potential if nifty expires between 5300 and 5800. i.e Total Profit of (103.70+30.90)x50=Rs6,627.50.

Lower Break Even = 5167.47
Upper Break Even = 5932.55

Above Open interest chart shows that 5200PE has the highest open interest among the option series which indicates that put writers are on the mood that
5200 will act as a support zone for the current option series

Rajandran R Telecom Engineer turned Full-time Derivative Trader. Mostly Trading Nifty, Banknifty, USDINR and High Liquid Stock Derivatives. Trading the Markets Since 2006 onwards. Using Market Profile and Orderflow for more than a decade. Designed and published 100+ open source trading systems on various trading tools. Strongly believe that market understanding and robust trading frameworks are the key to the trading success. Writing about Markets, Trading System Design, Market Sentiment, Trading Softwares & Trading Nuances since 2007 onwards. Author of Marketcalls.in and Co-Creator of Algomojo (Algorithmic Trading Platform for DIY Traders)

Nifty and Bank Nifty Straddle Premium, Implied Volatility and…

Focusing on the straddle premiums is quite important as we are nearing the major economic event of Budget 2023. Ahead of a major economic...
Rajandran R
1 min read

Understanding Option Mispricing Trading Strategies

Options mispricing is a phenomenon that occurs when the market price of an option deviates from its theoretical or fair value as calculated using...
Rajandran R
2 min read

Difference Between India VIX and Implied Volatility

India VIX (India Volatility Index) is a measure of the market’s expectation of volatility in the Indian stock market over the next 30 calendar...
Rajandran R
2 min read

4 Replies to “Nifty Options Short Strangle Strategy for March Option Expiry”

  1. Hi friend,
    I think this is a very risky strategy . What happen if Nifty going below 5000, which is very likely I think as early as next week.

    Azad

  2. @Azad

    This strategy is only for those who belive that believe that nifty will trade in a range between 5200-5900. Yes it is a riskly strategy thats why i had mentioned medium risk. But currently 5200PE has higher open interest compared to other strike prices so chances of nifty test below 5200 is less as of now.

Leave a Reply

Get Notifications, Alerts on Market Updates, Trading Tools, Automation & More