We were looking for an appropriate situation for setting up the strategy with Bank Nifty for last 4 trading sessions. As the credit at set up was not good enough we avoided the trades so far.

We look forward to today’s session to enter the strategy .

We sell the following Options:

HDFCBANK PUT 2280 May 30  2 Lots @ Rs. 54.00

ICICIBANK PUT 400 May 30 1 Lot @ Rs. 14.50

KOTAKBK PUT 1360 May 30 1 Lot @ Rs. 38.00

Credit to be received — 27000 + 39875 + 30400 = Rs. 97275

For hedging the risk, we buy 5 Lots of Bank Nifty PUT 29500 MAY 30 @ Rs. 750

Debit = Rs. 75000

Net Credit = Rs. 22275

Actual profit/loss will depend on how the stocks and the Bank Nifty move from here but if the trend remains upward, all the options expire worthless ans we get to keep the net credit.

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.