Weekly Bank Nifty and Nifty Options Writing 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  03 Dec Expiry with 70% Probability of Winning

  • Traders can short 13400 CE and 12500 PE

Below is the Range for NIFTY 03 Dec Expiry with 90% Probability of Winning

  • Traders can short 13800 CE and 12200 PE

Below is the Range for Bank Nifty 03 Dec Expiry with 70% Probability of Winning

  • Traders can short 30800  CE and 28300 PE

Below is the Range for Bank Nifty 03 Dec Expiry with 90% Probability of Winning

  • Traders can short 32000 CE and 27000 PE

Be Strict with SL and maintain a proper Position size

4 thoughts on “Weekly Bank Nifty and Nifty Options Writing Strategy”

  1. Bramesh,
    I was testing this above strategy from the time of publishing it . But not with real margin money as I am under capitalized now . The strategy has produced around Rs 7000 -/- profit for all the above combination of strategies -each 1 lot . Of course , every time market will not give the same result . That is why 50% of premium as SL mentioned .
    How many days/months/years of historical VIX is used to develop this strategy? Could you please explain if possible.
    Thanks
    D.Anand

  2. Bramesh ,
    Suppose if I want to find the Nifty or BankNifty Range (e.g., for Dec 20)using Open Interest ,
    1. Should I have to consider OI of Nov 26 Expiry (after closing)? OR
    2. One Day (closing trade)after Expiry i.e., Nov 27 as all the Options become Dec contract -current month
    3. Or the month end closing (eg. 30 Nov Monday)

    Please suggest

    Thanks
    Anand

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