Hi traders ๐...................
๐ Shorting strikes purely based on India vix volatility index
[Today monthly expirey I given strike to sell yesterday in premarket analysis ( you can Checkout those levels visit mine profile and scroll down)and market traded within those zone and option writers made some good profits ]
๐ India vix volatility index short strangle strike's
๐India Vix closed at 18.4 . which means premiums were high on both the sides of options . India vix measures the expected volatility for next one year.
means Nifty can go up by +18.4% towards upside from today's close to next one year and other chance -18.4% can go down by next one year
๐If we calculate India vix for day volatility or expected swing in both side for next day the we will get
โฝ Here banknifty can go upto max +360 points from previous close 37425
means it may can swing up to hardly 37800(not exactly add previous close ie .374253+ expected movement points ie . 360)
โฝ Or can go down by -360 points from previous close 37425 and it may be swing down to 37000
( Caution it doesn't include any sentiment ie . Global or economical or news)
โฝIndian Vix volatility index works best in range bound market and helps option sellers
โฝ Now clearly we get one strike from to short ie .37800 on CALL side
โฝ Another one in downside we get one strike ie . 37000 on PUT side
โฝwe can clearly observe that market maybe trade between this range so I will going to do this
Short strangle means selling OTM strikes of PE And CE
โฝ short CALL
โก๏ธ Sell 37800 CE with stop loss of 37800 (simply exist from position CE after breakout of 37800 )
โฝShort PUT
โก๏ธ Sell 37000 PE with the Stoploss of 37300 (or in other words : exist from PUT position if breakdown of 37300 which crucial support zone )
โก๏ธ If sold both strikes (or if you do short strangle)
Key important you must have to follow
โฝ Exist from one position if breakdown/breakout happens and keep it another side or another position until reach the target
โฝ If breakout happens at (37800)exist from Position of CE or buy back CE or close CE selling position
Then keep short side PE to reach Target of 37950
โฝ If breakdown happens (at 37300 ) then exist from Position PE or buyback PE or Close Position PE
Then keep it selling CALL (CE) until reach Target level 37000
๐You can also short only side either CALL or P
PUT and follow respective Stoploss points
(Personally I will recommend Sell CALL or CE becaut fear market is higher )
๐Make sure your capital is 1.6 L rupees to execute this strategy
๐Any doubts regarding on this comment below I will definitely help you guy's
And if I'm wrong please let me know in comment section I will definitely correct my mistake
โฝ Thanks for reading and do like it and follow for more and give reputation it will boost mine confidence
โฝhave nice day ๐
๐ Shorting strikes purely based on India vix volatility index
[Today monthly expirey I given strike to sell yesterday in premarket analysis ( you can Checkout those levels visit mine profile and scroll down)and market traded within those zone and option writers made some good profits ]
๐ India vix volatility index short strangle strike's
๐India Vix closed at 18.4 . which means premiums were high on both the sides of options . India vix measures the expected volatility for next one year.
means Nifty can go up by +18.4% towards upside from today's close to next one year and other chance -18.4% can go down by next one year
๐If we calculate India vix for day volatility or expected swing in both side for next day the we will get
โฝ Here banknifty can go upto max +360 points from previous close 37425
means it may can swing up to hardly 37800(not exactly add previous close ie .374253+ expected movement points ie . 360)
โฝ Or can go down by -360 points from previous close 37425 and it may be swing down to 37000
( Caution it doesn't include any sentiment ie . Global or economical or news)
โฝIndian Vix volatility index works best in range bound market and helps option sellers
โฝ Now clearly we get one strike from to short ie .37800 on CALL side
โฝ Another one in downside we get one strike ie . 37000 on PUT side
โฝwe can clearly observe that market maybe trade between this range so I will going to do this
Short strangle means selling OTM strikes of PE And CE
โฝ short CALL
โก๏ธ Sell 37800 CE with stop loss of 37800 (simply exist from position CE after breakout of 37800 )
โฝShort PUT
โก๏ธ Sell 37000 PE with the Stoploss of 37300 (or in other words : exist from PUT position if breakdown of 37300 which crucial support zone )
โก๏ธ If sold both strikes (or if you do short strangle)
Key important you must have to follow
โฝ Exist from one position if breakdown/breakout happens and keep it another side or another position until reach the target
โฝ If breakout happens at (37800)exist from Position of CE or buy back CE or close CE selling position
Then keep short side PE to reach Target of 37950
โฝ If breakdown happens (at 37300 ) then exist from Position PE or buyback PE or Close Position PE
Then keep it selling CALL (CE) until reach Target level 37000
๐You can also short only side either CALL or P
PUT and follow respective Stoploss points
(Personally I will recommend Sell CALL or CE becaut fear market is higher )
๐Make sure your capital is 1.6 L rupees to execute this strategy
๐Any doubts regarding on this comment below I will definitely help you guy's
And if I'm wrong please let me know in comment section I will definitely correct my mistake
โฝ Thanks for reading and do like it and follow for more and give reputation it will boost mine confidence
โฝhave nice day ๐
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.