Profiting from Weekly Options Selling of Nifty and Bank Nifty

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  10 Dec Expiry with 70% Probability of Winning

  • Traders can short 13400 CE and 12800 PE

Below is the Range for NIFTY 10 Dec Expiry with 90% Probability of Winning

  • Traders can short 13600 CE and 12700 PE

Below is the Range for Bank Nifty 10 Dec Expiry with 70% Probability of Winning

  • Traders can short 30700  CE and 28200 PE

Below is the Range for Bank Nifty 10 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

2 thoughts on “Profiting from Weekly Options Selling of Nifty and Bank Nifty”

  1. Bramesh ,

    Sorry to trouble you , Need small clarity please on STOP LOSS.

    “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.”

    For e.g., Premium collected on CE option = Rs 40
    Premium collected on PE option = Rs 32
    Total Premium is = 40+32 = Rs 72

    SL according to you is : Total Premium+ (Total Premium*50/100)
    In this case , it comes to 72+(72*50/100) =72+36 =108 . This is the SL .
    Now the question is ,
    1.Is this the SL to be triggered whenever the collective price of both CALL and PUT reaches this value ?OR
    2. This price of SL to be applied to CE and PE options individually as SL buy levels as the option contracts were sold. Whenever , either CE or PE Stop Loss triggers , do we need to square of the other contract also accordingly ?
    Please explain .

    Thanks and Regards,
    D.Anand

Leave a Reply