My Weekly Trading Strategies of Bank Nifty (07-12-2020 to 11-12-2020)

 1.    Trading Day 07-12-2020:


Above is Hourly Chart. On 7-12-2020 first Hourly candle closed exactly near resistance zone of 30200-30150 and formed Doji kind of candle, indicating range bound session with support around 29500. During such days we neither go long nor short hence decided to trade from both the side Call and Put.

My View:- Neutral.

My Probability:-  As my view was Neutral hence probability was 50-50 means no one side rally. And that exactly happens. On that day Bank Nifty just traded in range of 300 point in a day. And just because of that no profit no loss situation occurred. 

My Trade: 

Buy 31000 Call Option 1 lot ( Expiry 10-12-2020)
Sell 30600 Call Option 1 lot ( Expiry 10-12-2020)
Buy 28500 Put Option 1 Lot (Expiry 10-12-2020)
Sell 29000 Put Option 1 Lot (Expiry 10-12-2020)
Stop Loss 30300 Upper Side

Stop Loss 29500 Down Side

End of Day Result: Minor loss of Rs.175.


 2.    Trading Day 08-12-2020:


Above is Hourly Chart. On 8-12-2020 also same kind of situation on chart formed Bearish Candle near yesterday high. However, on this day Put call ratio was at 1.75 which is overbought and therefore i was sure that at least today market will not move upside at least for the day. And therefore initiated Bear Call Spread. However, at the end of day market again closed near morning high zone, hence no profit no loss situation.

My View:  Slightly Bearish as Put call ratio was very high at 1.75.

My Probability:  My probability was 80% that there will be slight downside. And 20% probability that market may move high.

My Trade:

Buy 31000 Call Option 1 lot ( Expiry 10-12-2020)
Sell 30600 Call Option 1 lot ( Expiry 10-12-2020)
Stop Loss: 30350

End of Day Result: Nil. Exit cost to Cost.




3.    Trading Day 09-12-2020:


Above is Hourly Chart. On 09-12-2020 Bank Nifty formed Bullish candle above previous two day high which was positive sign for day. And thereafter it moved towards 30750 from 30450. However, my view was not so bullish on that day because on 08-12-2020 market was overbought and just after two day i.e. on 10-12-2020 expiry. So my view was that market may not move much and may trade in range, but i was wrong. Market was bullish during the full day. And i have formed Butterfly on that day just because if market close in my butterfly range then i will carry this trade for next day 10-12-2020. And 10-12-2020 there was expiry. But on closing basis it closed beyond my range and hence i closed my position with loss of Rs.50.(In butterfly profit will be there if market trade in range).

My View:  Neutral.

My Probability:  View was neutral hence my probability was also neutral. But i proved wrong on that day.

My Trade:

Buy 30700 Call Option 1 lot ( Expiry 10-12-2020)
Sell 30500 Call Option 2 lot ( Expiry 10-12-2020)
Buy 30300 Call Option 1 Lot (Expiry 10-12-2020)
Maximum risk Rs.700


End of Day Result: Minor loss of Rs.50.



4.    Trading Day 10-12-2020:


Above is hourly chart of Bank Nifty. On 10-12-2020 it was expiry and on expiry day i mainly execute Butterfly covering 300-350 point range of expiry, and if that happens i ended my day with profit and if not then there will be limited loss in range of Rs.750-Rs.1000. However, on 10-12-2020 it was Loss of Rs.1205 as market closed above my expected range and i exited my position around 01:30 PM. 1st Hourly candle closed at 30400 and my view was that expiry will be in range of 30600-30800 considering open interest build up at 30500 strike price. But market closed at 30514. In that case my loss would be limited to Rs.300 only but i exited my from my position when it was trading around 30300.

My Trade:

Butterfly

Buy 30900 Call Option 1 lot ( Expiry 10-12-2020)
Sell 30700 Call Option 2 lot ( Expiry 10-12-2020)
Buy 30500 Call Option 1 Lot (Expiry 10-12-2020)
Maximum loss Rs 1000
Maximum Profit Rs.3300

End of Day Result: Minor loss of Rs.1205.



5.    Trading Day 11-12-2020:





Above is Hourly chart of Bank Nifty. On 11-12-2020 Bank Nifty formed bullish candle near resistance zone of 30700-30800 after taking support at 30200-30300 on 09-12-2020. Hence, my view was bullish hence formed Bull Put spread with Stop loss of 30500, however during the day Stop Loss hit and ended my trade with loss of Rs.750.

My View:  Bullish.

My Probability:  80% Bullish and 20% Bearish.

My Trade:

Buy 30200 Put Option 1 Lot (Expiry 17-12-2020)
Sell 30500 Put Option 1 Lot (Expiry 17-12-2020)
Stop Loss 30500

End of Day Result: Minor loss of Rs.750.


(Total Loss during the week comes to Rs.2200.)

My Rule of Trading (Nifty & Bank Nifty Option Only.)

1.    Wait till closing of 1st Hourly Candle.

2.    At closing price of Hourly candle i decide Trend. (Bullish, Bearish, Neutral).

3.    After that i apply Probability Ratio of situation formed on chart.

4.    Then take trade.

5.    Exit if Stop Loss Hit and Book Profit if Probability wins.

6.    Capital Requirement Rs.35000 to Rs.38000.


(Rule Base Trading helps to Consistent Performance Else Ready for Accident....✈๐Ÿ™†)


Thank You..

Happy Trading.
"Learn & Earn"...!!


0 comments:

Post a Comment