Bank-nifty Strategy

In all the stocks and index, the expiry

of F&O contracts is monthly.
 

On 27th May, 2016 weekly expiry was

introduced in Bank nifty i.e every
Thursday.
We have been trading in Bank nifty
since that time. We are regular
traders. We don't trade naked (one
side trading). Naked trading is a
speculation. We believe in hedging
and playing smartly.

In this, gain is possible if the index

revolves or closes around our
midpoint.
From Tuesday to Thursday, we adopt
sell strategy. Here the profit is limited
to the extent of premium paid and loss
is unlimited so we adopt 20 point stop
loss on Wednesday and Thursday &
10-15 pts Stop loss on Tuesday. If our
excel sheet shows 20 pts negative, we
square off the positions.
 What is sell strategy?
 
For example we sold 22700 Call
(Ce) and 22500 Put (Pe) At total
premium of 100. Our midpoint is
22600. So if the market closes
between 22700 and 22500, we
gain. We start losing only if the
index moves apart from our range.
On Monday and Friday we may
adopt buy strategy/sell strategy
depending on the premium and past
data available. In buy strategy, the
profit is unlimited and loss is
limited. Still ,we have a 10-15 point
stop loss rule.
 What is buy strategy?

For example we buy 22700 call and

22500 put at a total premium of 100.
We gain only if the market breaches
22400 or crosses 22800. We lose if
the market is between 22400- 22800.
During Wednesday and Thursday of
Monthly Expiry, we execute Buy
strategy as per our data reason being
its an expiry of all stock and index
contracts and premium are kept very
high. Many retailers go for sell
strategy by looking at the craving
premium but they are trapped by
operator as high premiums are taken
more higher on these days.
It is generally seen that the trend on
Wednesday is carried on Thursday.
But suppose during Monthly expiry
week, if Wednesday was a sell day, we
do not take chance to execute only sell
strategy on Thursday. Instead we
hedge the strategy itself by executing
both buy and sell strategy if the
situation demands.
 
The total cost is 6 point per lot
which includes brokerage, STT and
other taxes. One lot consist of
40qty.
 
We provide 14 times limit on
intraday basis options.
 
If on Monday, Tuesday or Friday, 1st
strategy hits Stop loss, we do not
execute 2nd strategy on that day. But
if strategy hits SL on Wednesday or
Thursday, we execute 2nd strategy if
the situation demands.
 
We execute strategy at 10:30 and exit
at 3:10. We don’t exit before 3:10 in
case of sell strategy while in case of
buy strategy we may exit before 3:10
if the gains are good.
We work in a pattern where risk
reward ratio is high
But the risk is capped to an extent i.e
Stop Loss
We don’t keep target as once it starts
to erode, it erodes till the end (8 out of
10 times).
For Your Understanding we have
posted two months’ results of August
2016 and May 2017.
 Premium premieum Profit/ low when
Sr no Date Strike price Entry time Exit time Close
RD PD Loss active

17-08- 18900c
1 10:30 167 187 12:20 120 -20 115
16 18900p
(Wed)

18-08- 19200c
2 10:30 133 153 3:00 137 -20 103
16 19300p
(THUR)

19-08- 19600c
3 10:30 158 134 3:10 130 24 128
2016 19200p
(FRI)

22-08- 19400c
4 10:30 147 144 3:10 142 3 142
2016 19100p
(MON)

23-08- 19400c
5 10:30 151 118 3:10 109 33 109
2016 19200p
(TUE)
 Premium premieum Profit/ low when
Sr no Date Strike price Entry time Exit time Close
RD PD Loss active
24-08- 19300c
6 10:30 165 138 3:10 136 27 171
2016 19300p
(WED)

25-08- 19500c
7 10.:30 212 188 3:10 182 24 174
2016 19300p
(THUR)

26-08- 19300C
8 10:30 196 202 3:10 200 -6 195
2016 19200P
(FRI)

29-08- 19300c
9 10:30 140 111 3:10 105 29 105
2016 19100p
(MON)

30-08- 19500C
10 10:30 115 120 3:10 112 -5 111
2016 19600P
(TUE)
 Premium premieum Profit/ low when
Sr no Date Strike price Entry time Exit time Close
RD PD Loss active

31-08- 19700c
11 11:00 128 148 3:00 114 -20 113
2016 19700p
(wed)

09/01/20 19800C
12 10:30 92 28 3:10 7 64 28
16 19800P
(THUR
S)

09/02/20 20000ce
13 10:45 167 153 3:10 150 13 150
16 19700p
(FRI)

09/06/20 20300c
14 10:30 133 153 1:01 -20
16 20100p
(TUE)

09/07/20 20400p
15 10:30 144 109 3:10 96 35 95
16 20500c
(WED)
 Premium premieum Profit low when
Srno Date Strike price Entry time Exit time Close
RD PD /Loss active
09/08/20 20500C
16 10:45 71 23 3:10 10 48 10
16 20400P
(THUR
S)

09/09/20 20400CE
17 11:10 163 145 3:10 136 18 136
16 20000P
(FRI)

09/12/20 20100C
18 10:30 157 130 3:10 128 27 128
16 19600P
(mon)

14/09/20 19900c
19 10:40 160 130 3:10 132 30 128
16 19800p
(wed)

15/09/20 19800c
20 11:00 85 25 3:10 28 60 32
19 19800P
(THUR
S)
TOTAL 344
 LOW
DAY STRIKE ENTRY PREM PREM EXIT CLOS PROFIT/ WHEN
DATE
NO PRICE TIME RECVD PAID TIME E (LOSS) ACTIV
E

8TH 22900C-
DAY 1 10:30 136 120 3:10 121 16 118
MAY 22600P
MON

9TH 22600C-
DAY 2 10.30 323 305 3:10 312 18 301
MAY 22800P
TUES

10TH 22800C-
DAY 3 10.30 215 187 3:10 187 28 182
MAY 22900P
WEDS

12TH 22800C-
DAY 4 10:30 248.2 205.2 2:45 200 43 191
MAY 22700P
FRIDAY

15TH 22900C-
DAY 5 10:30 159 155 3:10 150 4 150
MAY 22800P
MONDA
Y
 LOW
WHE
DAY STRIKE ENTRY PREM PREM EXIT CLOS PROFIT/
DATE N
NO PRICE TIME RECVD PAID TIME E (LOSS)
ACTI
VE
16TH 22800C-
DAY 6 10:30 186 200 3:10 196 -14 178
MAY 22800P
TUESD
AY
17TH 22900C-
DAY 7 10:30 156 125 3:10 127 31 124
MAY 22900P
WEDS
18TH 22700C-
DAY 8 10:30 136 86 3:10 96 50 84
MAY 22800P
THURSDAY
19TH 22900C-
DAY 9 10:30 268 215 12:30 200 53 200
MAY 22800P
FRIDA
Y
DAY 22TH 22900C-
10:30 160 164 3:10 157.15 -4 149
10 MAY 22700P
MOND
AY
 LOW
DAY STRIKE ENTRY PREM PREM EXIT CLOS PROFIT/ WHEN
DATE
NO PRICE TIME RECVD PAID TIME E (LOSS) ACTIV
E
23TH 22600C-
DAY 11 10:30 170 190 1:45 186 -20 161
MAY 22500P
TUESDA
Y
24TH 22500C-
DAY 12 10:30 292 312 1:30 260 -20 252
MAY 22700P
WEDNESDAY
25TH 22700C-
DAY 13 10:30 88 108 1:00 490 -20 70
MAY 22700P
THURSDAY
26TH 23200C-
DAY 14 10:21 245 225 1:21 218 -20 221
MAY 23000P
FRIDAY
29TH 23400C-
DAY 15 10:30 147 134 3:10 114 13 114
MAY 23000P
MONDA
Y
 LOW
DAY STRIKE ENTRY PREM PREM EXIT CLOS PROFIT/ WHEN
DATE
NO PRICE TIME RECVD PAID TIME E (LOSS) ACTIV
E
30TH 23300C-
DAY 16 10:30 163 150 3:10 148 13 145
MAY 23100P
TUESDA
Y
31ST 23200C-
DAY 17 10:30 308 274 3:10 267 34 42
MAY 23400P
WEDNESDAY
1ST 23200C-
DAY 18 10:30 344 195 3:10 196 75 194
JUNE 23400P
THURSDAY
2ND 23400C-
DAY 19 10:30 244 224 3 213 -20 248
JUNE 23300P
FRIDAY
5TH 23500C-
DAY 20 10:30 167 156 3:10 157 11 153
JUNE 23300P
MONDA
Y
TOTAL 271
Some of our successful trades.
Feel Free to Ask any Queries.

Contact:- 9773304301/9082506908
02239268663 / 8727

Nikhil Maheshwari

Email:- [email protected]
Thank You.