One can start doing option trading slowly now.
Let is start with selling straddle.
Let us find out NIFTY options where combined delta is less than 4 to 5%.
If anytime combined delta crosses 30% during the month, please exit immediately. It might not happen during one day or two days unless there is more than 250 points movement in NIFTY n just couple of days. So one does not need to monitor trade every minute but must be alert if something undue happens.
There will be budget session and NIFTY might again remember Modi and try to cross 7500. But keep an eye on delta. I will update everyday delta of the straddle trade at end of the day.
Assume NIFTY opens at similar level + 50-60 points tomorrow then
Sell 7600 NIFTY CALLs of June expiration around 25-26 and Sell 6900 PUT of July expiration around 20-22.
Combined premium will be around 40-45.
Do this in multiple lots.
Combined delta is near 4% considering present LTPs and IVs and it will not change unless there is huge gap up or gap down tomorrow.
If that is the case then don't enter in to the trade.
Disclaimer: This blog does not take any responsibility of your profit/loss
Let is start with selling straddle.
Let us find out NIFTY options where combined delta is less than 4 to 5%.
If anytime combined delta crosses 30% during the month, please exit immediately. It might not happen during one day or two days unless there is more than 250 points movement in NIFTY n just couple of days. So one does not need to monitor trade every minute but must be alert if something undue happens.
There will be budget session and NIFTY might again remember Modi and try to cross 7500. But keep an eye on delta. I will update everyday delta of the straddle trade at end of the day.
Assume NIFTY opens at similar level + 50-60 points tomorrow then
Sell 7600 NIFTY CALLs of June expiration around 25-26 and Sell 6900 PUT of July expiration around 20-22.
Combined premium will be around 40-45.
Do this in multiple lots.
Combined delta is near 4% considering present LTPs and IVs and it will not change unless there is huge gap up or gap down tomorrow.
If that is the case then don't enter in to the trade.
Disclaimer: This blog does not take any responsibility of your profit/loss
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