Iron Condor on Bank NIFTY
Sell 25100 BN CALL at around 48-50 (delta around 0.23)
Buy 25300 BN CALL at around 17-18
Sell 24600 BN PUT around 58-60 (delta around -0.23)
Buy 24400 BN PUT around 27
Total credit in your account could be around 8000/-
This strategy would have potential to generate maximum profit of Rs 7000-8000 and maximum loss potential also could be Rs 8000/-
But certainly we are not going to wait till maximum loss and would exit as advised by delta of the strategy.
Reason for choosing these strike prices.
1) Demand and supply levels at around 24600 and 25100 levels respectively.
2) Delta neutral on SELL contract positions. Delta of both CALL sell and PUT sell contract is below 0.25 which means there is hardly 25% chance that Bank NIFTY would cross 25100 or fall below 24600. So in short there is more than 75% chance that this trade set up would be successful!
3) Sufficient credit in trading account.
Advantages:
1) If one trades in 2 Iron Condor positions, total investments would be around Rs. 200,000. Gain could be between Rs. 2000-3000 in just three-four days. It is more than 100% gain with no pain!
2) No need of trade monitoring.
Exit rules:
1) Exit if loss is more than Rs. 2500/-
2) Preferably exit entire strategy if addition of delta of CALL and PUT sell contracts is more than 0.55.
Disclaimer: This blog does not take any responsibility of your profit or loss.
Sell 25100 BN CALL at around 48-50 (delta around 0.23)
Buy 25300 BN CALL at around 17-18
Sell 24600 BN PUT around 58-60 (delta around -0.23)
Buy 24400 BN PUT around 27
Total credit in your account could be around 8000/-
This strategy would have potential to generate maximum profit of Rs 7000-8000 and maximum loss potential also could be Rs 8000/-
But certainly we are not going to wait till maximum loss and would exit as advised by delta of the strategy.
Reason for choosing these strike prices.
1) Demand and supply levels at around 24600 and 25100 levels respectively.
2) Delta neutral on SELL contract positions. Delta of both CALL sell and PUT sell contract is below 0.25 which means there is hardly 25% chance that Bank NIFTY would cross 25100 or fall below 24600. So in short there is more than 75% chance that this trade set up would be successful!
3) Sufficient credit in trading account.
Advantages:
1) If one trades in 2 Iron Condor positions, total investments would be around Rs. 200,000. Gain could be between Rs. 2000-3000 in just three-four days. It is more than 100% gain with no pain!
2) No need of trade monitoring.
Exit rules:
1) Exit if loss is more than Rs. 2500/-
2) Preferably exit entire strategy if addition of delta of CALL and PUT sell contracts is more than 0.55.
Disclaimer: This blog does not take any responsibility of your profit or loss.
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