Real Time Update :
Posting at 11:10 am:
The trades can now be closed for April Expiry series:
Buy HDFCBANK PUT 2300 @ Rs. 18.40
Buy ICICIBAN PUT 400 @ Rs. 3.30
Buy KOTAKBK PUT 1340 @ Rs. 4.00
Sell BANKNIFTY PUT 30300 @ Rs. 184.00
May expiry strategy not to be initiated yet. We shall see about that on Monday.
Earlier Post :
We had April Series of Bank Nifty Strategy doing well so far.
Maximum expected profit from this strategy was Rs. 31000. At close on Tuesday ( yesterday was a holiday) it is already in profit by about Rs. 23500. It is time to book the profit i the range Rs. 23000-24000 as the day begins and move on to May Series with exactly similar strategy.
How To Set Up ?:
Sell 2 Lots of HDFCBANK PUT 2300 MAY 30 @ Rs. 56.00
Sell 1 Lot of ICICIBANK PUT 400 MAY 30 @ Rs. 13.60
Sell 1 Lot of KOTAKBK PUT 1380 MAY 30 @ Rs. 46.00
BUY 5 Lots of BANKNIFTY PUT 30500 MAY 30 @ Rs. 920
Credits and Debits :
HDFCBANK 2 Lots Sell = Rs. 28000
ICICIBANK 1 Lot Sell = Rs. 37400
KOTAKBK 1 Lot Sell = Rs. 36800
Total Credit == Rs. 102200
Total Debit === Rs. 92000
Net Credit == Rs. 10200
Not exactly a great amount of credit. This maybe due to less volatility of HDFCBANK and high volatility of BANKNIFTY options.
Actual profitability may differ based on how the market goes from here.
We shall review on daily basis.
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.
vishal agarwal April 19, 2019 at 7:15 pm
Sir do you think one should execute this strategy for such a small credit of 10k? BN options seem to be overpriced compared to individual stock options. Maybe one can wait for the onset of May expiry (in terms of the calendar) to see if better pricing/ credit becomes available.Reply