Monday, 15 November 2021

How To Compound Money Using Ironfly option strategy

Secret Tips of Making money using Ironfly

I deploy Ironfly using weekly options for 10 days to expire. My target is to make a 2% return on a margin within 10 trading days. The combination of weekly Ironfly and monthly BATMAN strategy helps traders enhance the profitability and probability of profit in the combined trade. BANF is a high volatile instrument, so I prefer this defined risk strategy.

IRON FLY set up for the week of 25th November 2021


Ironfly Payoff chart














Estimated margin

Rs. 65000 for one lot

Option Greeks for the strategy

Theta 900

Vega 950

Exit plan

1. Profit 1200 to 1500 per lot.

2. Price hit breakeven point at any side

Adjustment

I prefer not to make any adjustments in the weekly Ironfly trade.

The issue with IF is an overnight gap up or gap down. In the weekly strategy, the gama effect comes quickly, so it becomes difficult to manage. In this scenario, the monthly BATMAN strategy gains. I adjust the gap and gap down scenario using BNF future.

Please click the link to get "day3" update on banknifty option strategy performance

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