How to trade Nifty/Bank Nifty Option Intraday trades (weekly expiry) ?
• We suggest to keep a minimum capital Rs.30k to trade in Nifty and Rs.30k for Bank Nifty weekly option under 2+2+4 strategy i.e., to take initially 2 lots, if necessary, to buy next level 2 lots and 4 lots at the low level, either PUT/CALL option, as per the message given with a minimum slippage Rs.3.30, to the maximum of Rs,6.90, for an example, if a Buy given at Rs.90 then, one can buy 2 lots from Rs.94.50 onwards, the maximum number of lots may be decided based on the capital availability and risk appetite.
• Number of calls in a day, 1-2 trades in Nifty/Bank Nifty Option weekly expiry, based on the Nifty/Bank Nifty movement, we will not carry over the position to the next day, 100% the position willl be covered on the same day.
• We must take only BUY side trade in a weekly expiry and do not try any SELL side trades, since selling/writing of an Option requires the margin money equivalent to the margin required for Nifty/Bank Nifty Futures contract and also the risk is unlimited in selling of an option contract.
• All the entry orders should be placed immediately at the specified strike price and the mentioned premium amount, as soon as the message is reached you with or without slippage and do not wait for the price level to reach the first entry/other entry levels/low level near stop loss levels.
• Targets for Intra option trading are starting from the minimum level between Rs.8-12 in the Nifty Option and Rs.15-30 for the Bank Nifty Option. The maximum profit based on the further movement of Nifty or Bank Nifty, further targets updates will be sent in advacne. We keep sending the follow up messages till the position is closed, hence one can book the profit at the first level target if you want, else can hold the position till it reaches to next level/further level/final level or extension targets. Our Risk to reward-RR is standing at the minimum level 1:1 to the maximum of 1:3.
• Next level/further level/low level buy may try when the price reaches to that level and book those lots for the profit of Rs.8-15 for the Nifty Option and Rs.15-30 for Bank Nifty Option, the next and further buy should not hold, the same to be booked profit then and there, at the low level/stop loss level buy try 4 lots and book 3 lots at the given profit booking levels and fnal lot may be hold for further targets, till the final exit given.
• Slippage levels are nothing but to take the trades by applying the extra amount to buy, instead of placing the orders at the exact entry levels, this may be helpful to enter the trade without loosing the trading opportunity. Apply full slippage for the first level and low level buy trades and use half (50%) slippage for next level/further level/re-entry level and trailing stop loss level entries.
• The slippage points are minimum Rs.3.30 and a maximum of Rs.6-7, based on the premium amount the slippage can be applied, as given below:
• Premium price above Rs.200, the maximum slippage is Rs.6.90
• Premium price between Rs.199-140 the maximum slippage is Rs.6.30
• Premium price between Rs.139-100 the maximum slippage is Rs.5.40
• Premium price between Rs. 99-70 the maximum slippage is Rs.4.50
• Premium price is below Rs.69-40 the slippage can be Rs.3.30
• Always place the order in decimal points and avoid round figures for example if, buy given at Rs.90, instead of placing the order at Rs.90, you can place the order at Rs.90.50 like that with a decimal points.
• We advise all the off-line traders or those who do call-on-trade basis, to place the stop loss order in the system well in advance to avoid loss due to spike made at the stop loss level. The slippage at stop loss order is allowed Rs.5 below from the stop loss level given to avoid false trigger. If, we use the word SUSTAIN in our stop loss message or trailing stop loss message then, keep a slippage of Rs.10 below from the stop loss level given.
How to trade Nifty & Bank Nifty Weekly Option Breakout trades ?
• We suggest to take 10-20 lots in weekly Nifty Option/weekly Bank Nifty Option 20-40 lots, either PUT/CALL (based the on the premium amount and the initial capital, the number of lots can be decided), as per the message given with a maximum slippage of 7 points for eg., if Buy given at 90 then, one can start buy from 94 onwards, the maximum number of lots may be decided based on the capital availability and use an initial capital of Rs.70k and keep the buffer capital of Rs.20k for buying more lots if required.
• We must trade only BUY side trade in weekly option and do not try any SELL side trades since, Selling/Writing of an Option requires the margin money equivalent to the margin required for Nifty/Bank Nifty Futures contract and also the risk is unlimited in Selling of an option contract.
• Entry order should be placed immediately as soon as the message is reached you and do not wait for the price level to reach our entry levels.
• Next level buy may try when the price reaches below 10-20% from the first level buy, then take more lots and book the profit for 10-15% of the premium amount and further buy may try at the stop loss level since, from the stop loss level, it may bounce or move 10-20% higher so, one can book the profit in low level buy and may hold the remaining position till further advice/message.
• Targets for Option trading breakout calls are starts from 10-15% of the Option premium amount, to a maximum of 100% of the premium amount. We will send the initial target along with the BUY message, further targets may follow later along with Stop loss. The Stop loss level is 30% of the Option Premium amount. You can allow slippage for buying the option 2-6 points above from the premium price level.
• One can start booking profit 50% of the number of lots taken at TGT1 level and 25% of lots at TGT2 and keep rest for final Target. Mostly we may close all the lots on the same day, If anyone wants may hold minimum 1 lot for the next trading session, we may send advice in this regard at the closing time.
• When we say on our message to book profit and keep minimum lots then book 50% of the position and if we say in the subsequent message to keep very minimum lots then keep 10-15% of the positions and finally we say to keep 1-2 lots rest cover means, you can book profit rest of the position and hold 1-2 lots with SL to Trailing Stop loss level or at the cost price.
• We may wait for the breakout opportunity to happen else, we may try the Option trade based on the support/resistance levels with a minimum first level targets 10-15% and the maximum of 50-100% of the premium amount
• Slippage levels are nothing but to take the trades by applying the extra amount to buy, instead of placing the orders at the exact entry levels, this may be helpful to enter the trade without loosing the trading opportunity. Apply full slippage for the first level and low level buy trades and use half (50%) slippage for next level/further level/re-entry level and trailing stop loss level entries
• The slippage points are minimum Rs.3.30 and maximum of Rs.6-7, based on the premium amount the slippage can be applied, as given below:
• Premium price above Rs.200, the maximum slippage is Rs.6.90
• Premium price between Rs.199-140 the maximum slippage is Rs.6.30
• Premium price between Rs.139-100 the maximum slippage is Rs.5.40
• Premium price between Rs. 99-70 the maximum slippage is Rs.4.50
• Premium price is below Rs.69-40 the slippage can be Rs.3.30
• Always place the order in decimal points and avoid round figures, for an example if, buy given at Rs.60, instead of placing the order at Rs.60, you can place the order at Rs. 60.40 like that with a decimal points.
• We advise all the off-line traders or those who do call-on-trade basis, to place the Stop loss order in the system well in advance to avoid huge losses due to spike made at the stop loss level. The slippage at stop loss order is allowed Rs.5 below from the stop loss level given to avoid false trigger. If, we sued the word SUSTAIN in our stop loss message or trailing stop loss message, then keep a slippage of Rs. 10 below from the stop loss level given.