28 Aug 2024Bank Nifty Far OTM strangle - low premium, low return
Mis à jour
Sell 53000 CE for 9.9 and 48700 PE for 11 for a collective premium of 20.
New traders can try this, this is a naked call Live or on Paper to understand time decay and volatility.
Please note this is a naked call with limited and defined max profit, and unlimited loss possibility. To make it safer one can hedge, however since this is such a low premium, hedging will not be of much use and will reduce the profit considerably. Rather put a defined SL as per your risk appetite, safer rule of thumb is when one leg becomes double, square it off and wait for the other to decay completely, to be noted is that even that is not fool proof as a whiplash can cause loss both sides.
New traders can try this, this is a naked call Live or on Paper to understand time decay and volatility.
Please note this is a naked call with limited and defined max profit, and unlimited loss possibility. To make it safer one can hedge, however since this is such a low premium, hedging will not be of much use and will reduce the profit considerably. Rather put a defined SL as per your risk appetite, safer rule of thumb is when one leg becomes double, square it off and wait for the other to decay completely, to be noted is that even that is not fool proof as a whiplash can cause loss both sides.
Note
From 11 to 3.65 PE and from 9.9 to 4.45 Call even after bank nifty going 300 Pips +, thats the beauty Theta decay and far OTM, especially over a weekend and close to expiryTrade fermée: cible de profit atteinte
Rocking trade will put a new one as of todays analysis . closed at 2.2 /2.2 12 PM
Clause de non-responsabilité
Les informations et les publications ne sont pas destinées à être, et ne constituent pas, des conseils ou des recommandations en matière de finance, d'investissement, de trading ou d'autres types de conseils fournis ou approuvés par TradingView. Pour en savoir plus, consultez les Conditions d'utilisation.