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Banknifty Strategy - Expiry 28th January 2021 - Closed with 1.7% ROI

  Last edited on Saturday 28th January 2021


  • Banknifty cloased at 32291.05
  • Banknifty current future closed at 32320
  • SGX Nifty current futures at 14639
  • Put Call Ratio (PCR) is 0.93 and it is Neutral to Bearish.
  • Max pain is at 32300.
  • INDIAVIX is at 22.18
  • Union Budget is on 1st February 2021 because of that market is volatile.

Based on the above data we can say Banknifty is neutral to bearish and market is volatile. May gap up tomorrow. 31500 acts as good support and 33400 may be a good resistance. Our strategies are based on this support and resistance.

Current expiry is on 28th January 2021

Our view is Neutral

Option Prices may change while you place the trades. Place trades after 9:45 AM. Adjustments will be provided if needed. Capital may required more if adjustments are made. Recomend to deploy only 50% of the capital.

  • All the strategies will be deployed on 22nd January 2021

Strategy 1 - Chicken Iron Condor

  • Sell 31500 PE x 2 Lots 28st Jan Expiry
  • Sell 31600 PE x 1 Lot 28st Jan Expiry
  • Buy 31200 PE x 2 Lots 28st Jan Expiry
  • Buy 31300 PE x 1 Lot 28st Jan Expiry
  • Sell 33300 CE x 1 Lots28st Jan Expiry
  • Sell 33400 CE x 2 Lots 28st Jan Expiry
  • Buy 33600 CE x 1 Lot 28st Jan Expiry
  • Buy 33700 CE x 2 Lots 28st Jan Expiry
Return On Investment (ROI) will be 4.59%. Capital required is 1.24 Lakhs but hightly recomend to keep at least 2 Lakhs. 

Pros - Probability of profit is high even market is up. Risk Is limited.
Cons - Vega is negative so won't good for highly volatile market.

Adjustments

  • 22nd January 2021


Our view went terribly wrong. So, we need to do adjustment to come out from profits.
Follow below steps: 
  • Exit all the positions at Current Market Price (CMP) with Loss of Rs 4201. 
  • In a dainly timeframe Banknifty high is on today is 32131 which acts as good resistance.
  • As 32000 is a psycological level and its also a good resistance. 
  • We use all of our capital which is here 1.24 Lakhs to sell credit spread at 32000
  • To make it safe I am also selling 32100 credit spread.
  • Create below positions.

If you have more capital sell credit spread at 32000 and above. To cover up loss and come out from profit. I have used only 6 lots of credit spread to maintain our 1.24 Lakh position.

This is the reason I said to only use 50% capital to deploy. So 50% capital should be 1.24Lakhs here. Keep rest of the capital we may need later.
  • 25th January 2021
  • 26th January 2021
  • 28th January 2021

Exited with Rs 2494 (6695-4201) Profit. Which is 1.7% ROI.

If you like my blog, let me know in the comments and I will post more this kind of blogs

Thanks and Regards,
Techie VISH 😉.

Check out my Nifty strategy click here

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