Bank Nifty weekly expiry options have been introduced in the year 2016 since then many traders began to speculate with options trading especially on expiry days by buying OTM options with an expectation of seeing huge gains
Every Thursday comes the index expiry of Nifty as well as Bank nifty and the challenge an option buyer faces is to whether to buy options and when to buy them. This blog aims to answer these questions with a quant-based model.
The market lot size for Bank Nifty option has been changed to 25 from 20 with effect from the beginning of July series.
Now we need to watch the back nifty movements from the start of the market i.e around 9 am from the morning. Keep watching the levels of market and add some option chains to list on your Demat account to review their premium values as well.
For Example :
BankNifty 21000 Pe(PUT)
BankNifty 21000 Ce(CALL)
Above option chain example as per according to the current level of Bank nifty.
You need to add some nearby levels of bank nifty option Chain according to market behavior. If you saw the market behavior is very volatile this means there is a chance of making money but with risk But you want money in Quick session you need to take risks.
Now Around 1:30 pm bank nifty @21300 level. If you already watching the levels of 21300 PUT in morning Premium value you saw around 150 and one lot Cost is 3000 rs, But if a market is not moving at all premium value you will see around 30 or 40 or maybe less and same premium will be for 21300 Call i.e around 40 rs and lot prize around 800 rs or nearby.
Now you have to check the latest news and the global market indicates this will not take more than 5 minutes.
Now you have an idea that the market is going to Fall or Rise, invest 800 Rs in put or call if mark moves 100 points from current levels premium price will move to 40 to 100-120 and your profit will be 1000++ and more depends on movement. Everything is at risk but you can make money on the expiry day.
Will Provide some bank nifty strategies in my Next article.
Every Thursday comes the index expiry of Nifty as well as Bank nifty and the challenge an option buyer faces is to whether to buy options and when to buy them. This blog aims to answer these questions with a quant-based model.
The market lot size for Bank Nifty option has been changed to 25 from 20 with effect from the beginning of July series.
Now we need to watch the back nifty movements from the start of the market i.e around 9 am from the morning. Keep watching the levels of market and add some option chains to list on your Demat account to review their premium values as well.
For Example :
BankNifty 21000 Pe(PUT)
BankNifty 21000 Ce(CALL)
Above option chain example as per according to the current level of Bank nifty.
You need to add some nearby levels of bank nifty option Chain according to market behavior. If you saw the market behavior is very volatile this means there is a chance of making money but with risk But you want money in Quick session you need to take risks.
Now Around 1:30 pm bank nifty @21300 level. If you already watching the levels of 21300 PUT in morning Premium value you saw around 150 and one lot Cost is 3000 rs, But if a market is not moving at all premium value you will see around 30 or 40 or maybe less and same premium will be for 21300 Call i.e around 40 rs and lot prize around 800 rs or nearby.
Now you have to check the latest news and the global market indicates this will not take more than 5 minutes.
Now you have an idea that the market is going to Fall or Rise, invest 800 Rs in put or call if mark moves 100 points from current levels premium price will move to 40 to 100-120 and your profit will be 1000++ and more depends on movement. Everything is at risk but you can make money on the expiry day.
Will Provide some bank nifty strategies in my Next article.
