Wednesday, 17 November 2021

Day 3: Update on Option trading strategies and plan for 18th Nov 2021

Possible Banknifty Levels based on Gann Price Time Square

Today till 11, Ketu was day lord and Raghu sub lord. This combination gives a trending move. Market made day's high at 10:30 AM and double top around 11:10 AM. The market gave up all its morning gain and closed near 38100.

The market is trading below 13,32,34, and 55 EMA in the daily chart.

The current downfall started on 26th October, Today was the 16th day, and the price broke the 4th and 9th day low.

The price moved from the 4th day low of downfall to the 16th day low is 550 points.

In this period, time moved 2 units and price advanced 1 unit.

As per the Gann method price can go up to 37537 on or before 26th November if it breaks 38025. As per Gann levels, 38025 is critical support. Bank nifty took resistance and support both around 38000 stories from 16th Sep'21 to 10th Oct21.

Banknifty daily price chart













Future and Options data for banknifty for monthly expiry

  • Spot price     380411
  • Future price  38100
  • Put OI    213495
  • Call OI  320406
  • Max pain 38200 
  • PCR 0.52
FII+PRO are net sellers and the Client is a net buyer in market. They reached an extreme. so a trending move is around.

Update on monthly BATMAN strategy

Sold another call at 41000 because the market is bearish. Overall position delta is 24. 

If the market goes down, I may have to sell future to keep the position delta neutral.

Once the price trades below 38000 for an hour, the monthly BATMAN strategy will be closed and moved to 38000, or an additional put option will be purchased beyond 37000. 

If volatility increases, the high negative vega of this strategy will hurt the position. The loss due to negative vega needs to be mitigated.

Payoff chart of monthly BATMAN strategy





Update on weekly IRONFLY strategy

Booked 38000 PE at a profit of 4250. Bought one lot 38200 PE. This adjustment ensures no loss if the market goes farther down, but the strategy will make a good return for any reversal.

Payoff chart of IRONFLY strategy


Current P&L for both strateies

Realized profit till 17th November 2021 :

   9246 (15th November)

+ 4250 (17th November)

13496

Unrealized gain from option trading strategies

Monthly BATMAN   ( expiry 30th December) 2376

Weekly Ironfly    ( expiry 25th November) 2373

Target 30k by 1st December 2021

To know more on best investments for double profit in the short term, read the below articles :

2% Return in 10 days, Safe Banknifty Option Trading Strategies

How To Compound Money Using Ironfly option strategy

Please visit our home page for regular updates on banknifty trading strategy 

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