Rajandran R Founder of Marketcalls and Co-Founder Algomojo. Full-Time Derivative Trader. Expert in Designing Trading Systems (Amibroker, Ninjatrader, Metatrader, Python, Pinescript). Trading the markets since 2006. Mentoring Traders on Trading System Designing, Market Profile, Orderflow and Trade Automation.

Options Strategy: Nifty Weekly Bull Put Spread

37 sec read

Nifty Apr Series on the hourly timeframe showed trend exhaustion and the Nifty Futures is trading with 100 pts of premium. Trading sentiment flipped to positive on the daily timeframe indicating a potential bullish to a sideways trading opportunity.

One can attempt to capitalize the trading sentiment with a simple vertical spread – credit strategy to capitalize view that Hourly Buy signal in Vlintra V5 is likely to hold and odds of price staying above 14400 for the next 5 trading sessions. Bull Put Spreads is a simple option writing strategy hedged with OTM options.

Main Position – 14600PE (Short ITM PE Options)
Hedged Position – 14200PE (Long OTM PE Options)

Max Profit Potential is Rs9849/lot
Days to Expiry: 5 trading days
Breakeven: 14469
Margin Required: 50K (Approx)

At this point of writing, Nifty spot price is trading around 14512 levels.


Positional Greeks

Overall current sentiment is holding positive for the series. Higher odds of 1st Apr Expiry closing above 14500 levels.

Strategy Update as on 30th Mar 2021 (11.30a.m)

Closing the Spread at 30th Mar 2021 two days ahead of expiry

Rajandran R Founder of Marketcalls and Co-Founder Algomojo. Full-Time Derivative Trader. Expert in Designing Trading Systems (Amibroker, Ninjatrader, Metatrader, Python, Pinescript). Trading the markets since 2006. Mentoring Traders on Trading System Designing, Market Profile, Orderflow and Trade Automation.

Short Covering from an Extreme Short Term Inventory –…

Nifty trading inventory goes short to too short as on last Monday trading session followed by a short-covering rally and this inventory adjustment process...
Rajandran R
22 sec read

State of the Market – 20th June 2022

It's Monday morning and SGX Nifty is trading sub 15300 levels and a little bit of nervousness in the markets as the last Thursday's...
Rajandran R
1 min read

Nifty Hourly Exhaustion and Trading Inventory getting short to…

Nifty Futures on Monday's trading session opened a gap down and started trading inline with the global sentiment. However, in the second half of...
Rajandran R
19 sec read

Leave a Reply

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