This is how BANKNIFTY performed on April 02, 2019.

It was flat or negative for most of the day and took off in the last one hour of trade.

Our strategy is about selling PUTS in the top 3 stocks in BANKNIFTY with the expectation that these stocks will be moving upwards and we get to keep the premium.

Things can always go wrong. For protection, we buy BANKNIFTY PUTS of almost matching value ( Trade Value ) of the current strike which was 30300 in the morning on 02-04-2019.

After that it is just wait and watch.

This is how the set up was :

Net credit of Rs. 31100 is available on set up. It does not mean that we have earned this profit today. This is the most likely profit if our expectation of these stocks going up comes right. The profit may be less than this number in case these stocks go down sharply. But we are protected against a big loss by our PUTS which will gain some value as the down move in these stocks will take BANKNIFTY also lower.

We shall be reviewing the position on daily basis.

What do we do for the day ? :

Absolutely nothing.

No need even to look at the prices if you so desire. Let the strategy function without any interference. That is what strategies are meant for. Do nothing, relax and let the trade conclude as per the plan.

Disclaimer: This post and examples are for teaching purpose only and are not meant as advice/suggestion to trade in these stocks. Trading in Futures and Options can lead to big losses and should be done with appropriate knowledge and advice only. Mentioning the stocks here does not imply that I have a trading position or likely to take a trade in these stocks.