NIFTY - 12 Nov 2020 Weekly Expiry Strategy03 (Closed with profit)

Disclaimer: Investing in stocks/mutual funds or any other instruments are subject to market risks. Any strategies or trades that are described here are only for educational purpose. Please do your own research or consult your financial advisor before investing.

 

THE STRATEGY (DATE: 11 Nov 2020)

Put a simple short strangle by choosing a premium of 10-15 INR on the put and call side. No need to hedge the position but ensure you take the position around 10AM (the first 30-45 mins, NIFTY would have already moved and will be getting ready to consolidate into a range.

This is ideal for Wednesdays since Theta decay will benefit us.

 

THE SET UP

1) Sell 12NOV2020 12950CE @11.75

2) Sell 12NOV2020 12400PE @10.55

 

MARGIN REQUIRED --> ~75000 INR

 

EXPECTED MAX PROFIT --> Min of ~1500 - (Expecting the markets to be in a range between 10AM - 12PM on Wednesdays)

 

** RISK MANAGEMENT - EXIT CRITERIA --> Close the position if loss is 3% of the invested capital **

 

Result from the trade placed on 11/11/2020

 

Profit --> 1286 INR (~1.7%)

 

 

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Account opening links:

To open account with zerodha, click here --> https://zerodha.com/?c=BR8317

 

To open account with angel broking, click here --> https://tinyurl.com/y3pqj339

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