Weekly Bank Nifty and Nifty Option Selling Strategy

The Below Strategy will be Helpful for Option Writers, We are using Historical Volatility of Index to predict the probable range of market in next 5 trading sessions.

We get this Range of Expiry day close and take position next day at Open.

We have 2 methodology where we have 70% Probability of Winning and 90% Probability of Winning.

As the Portability of Winning increase the returns also come down.

Always Keep SL 50% of premium you got. Suppose you get 50 point premium in Shorting both Call and Put So SL for this Trade should be Kept at 75 Points.

Below is the Range for NIFTY  02 July Expiry with 70% Probability of Winning

  • Traders can Short 10600 CE and 9900 PE

Below is the Range for NIFTY  02 July Expiry with 90% Probability of Winning

  • Traders can Short 11000 CE and 9600 PE

Below is the Range for Bank Nifty 02 July Expiry with 70% Probability of Winning

  • Traders can Short 22500 CE and 20500 PE

Below is the Range for Bank Nifty 02 July Expiry with 90% Probability of Winning

  • Traders can Short 23600 CE and 19500 PE

Be Strict with SL and maintain a proper Position size

6 thoughts on “Weekly Bank Nifty and Nifty Option Selling Strategy”

  1. Hello Sir,
    As a follow up to your above answer on SL ,

    Lets say we Sold 11000 CE for Rs 11 , Sold 9600 PE for Rs 5 , Now the combined premium is Rs 16 . 50% of premium received is Rs. 8 . When the combined value of CE and PE reaches Rs 24 , We should exit the trade , is my understanding correct ?

  2. Thanks a lot Sir,
    the SL is not clearly understood, please explain.
    If I receive 50 point premium (PE = 25, CE = 25, total premium = 50); SL if kept at 50% should be 25 points. But above says 75 points.

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