Nifty Strategies - Expiry 28th January 2021 - Closed with 6% ROI

 Last edited on Saturday 28th January 2021

• Nifty cloased at 14630.4 
• Nifty current future closed at 14639.8
• SGX Nifty current futures at 14623.5
• Put Call Ratio (PCR) is 1.18 and it is Bearish.
• Max pain is at 14500.
• 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 Nifty is neutral and market is volatile. 14350 acts as good support and 15000 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 - Ratio Spread

Return On Investment (ROI) will be 2.62%. Capital required is 1.72 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 CE/Call positions at Current Market Price (CMP) with Loss of Rs 4171. 
• In a dainly timeframe Nifty high is on today is 14619 which acts as good resistance.
• As 14500 and 14600 is a psycological level and its also a good resistance. 
• We use all of our capital which is here 1.72 Lakhs to sell credit spread at 14600
• To come out from profit we need more capital of 1.6 Lakhs.
• Create below positions.

If you have more capital sell credit spread at 14600 and above. To cover up loss and come out from profit. I have used 7 lots of credit spread. Also a buy 14500 PE position to minimize the credit spread to come out from profits.

This is the reason I said to only use 50% capital to deploy. 

You can also exit all the positions and sell 5 credit spread @14600 and above to get out from loss and come out from profits, this doesn't requires additional margin/capital. In the existing 1.72 Lakhs it can be done. However, here I have used the existing ratio spread and adjusted the put side of that.

• 25th January 2021

• 26th January 2021

You can close the position as we are in 16.1K profit, for risk takers hold on till expiry to get max profit. Only problem is if there is a short covering profits may reduce.

• 28th January 2021

Exited with Rs 19746 Profit. Which is 6% 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 😉.

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