What Is The Best Buying Bank Nifty Option Trading Strategy

 

bank nifty option trading strategy


Bank Nifty Option Trading Strategy – Intraday traders are always on the lookout for a strategy that allows them to consistently profit and minimize losses. 

Every trader is always looking for a strategy with a good risk-reward ratio. Many traders trade in only one segment to reduce their risk.

Like Nifty, Bank Nifty, Commodity, Equity, etc. Today I will tell you a strategy in which the risk-reward ratio is very favorable.  

This strategy works very well in Bank Nifty because Bank Nifty is quite volatile. So let’s move on to our strategy.

 

Best Bank Nifty Option Trading Strategy

This is a Bank Nifty buying strategy. For this, you need to prepare a setup. This is a BTST strategy of Bank Nifty. 

You only have to do this once a week. You have to buy both Call and Put of Bank Nifty on Tuesday. 

For example, 

If Bank Nifty is trading at 36700 after 3:15 on Tuesday then you have to buy a call of 37000 which will cost around Rs 100 and Buy a put of 36400 which will also cost around Rs 100. 

In this way, you have to buy 300 points up and 300 points down call, and put. 

Keep in mind, buy it only after 3:15 on Tuesday. Your total expenditure in this setup is Rs.5,000.

Now we have to wait for the next day. The next day on Wednesday, Bank Nifty will either open higher or open lower. 

If Bank Nifty gives Gap Up or Gap Down opening then you can exit with profit by squaring off both your positions in the morning itself. 

If the market is range bound then you wait till 12 o’clock, during this time the market will give 200 or 300 points of up or down movement. 

You can easily earn 100 points in a movement of 200 or 300 points.

100 points mean Rs 2,500. If the market goes up or down by more than 300 points, In this case, you can easily get 200 or 300 points.

Suppose you bought a call worth 100  and the market went up by 300 points, you would gain about 150 points and your value in the put would decrease by 50 points. 

 

 

bank nifty buying strategy


The above picture is used for illustration only.

If you remove the loss of the put-in 150 points, then you will be in profit of about 100 points.

Similarly, it will work in the bearish market, In Bearish market your put value will increase rapidly and you will be in profit even in that condition. 

You will always be in profit no matter which way the market goes. When you become proficient in this strategy, you can increase your lot.

In this way, you can earn consistent profit by just buying in Bank Nifty.  

This strategy will work 8 times out of 10. By 12 o’clock on Wednesday, you will be in profit. 

Even if you are not in much profit, you should leave the market by 12 o’clock, even in this situation you will remain in profit. 

You just have to stick to a few things like buying calls and puts on a difference of 300 points only after 3:15 on Tuesday. 

Close your trade by 12 noon on Wednesday. Decide your profit and exit immediately when you get that much.

 

Personal Suggestion

I always enter with 50 lots on Tuesdays and place robo trade from my App. 

I always go for 50 points only. I put a square off of 150-150 in both the call and the put. 

My trades are automatically squared off when I reach my points. 

Always do paper trade before entering into the market.

 

 

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