The new week begins.
F&O series for July 2021 comes to an end on Thursday, July 29.
We had closed the trades in this series on Friday, July 23 with a good profit of Rs. 64485.
The strategy has worked well so far with 2 losses in 11 months when the trades were set up.
It is time to set up for August Series:
We take top 10 stocks of NIFTY by weight.
This data is of June 30 as published by NSE.
We find that ITC has moved out of top 10.
But there are 4 banking stocks in the top 10. We take out AXISBANK and replace it with ITC. That means we are going with the same stocks as we had in July series.
We sell PUTS for 2-3% Out of Money strikes.
We BUY 10 lots of NIFTY PUTS for about 4% away Out of Money strike to hedge the sold options.
These transactions will give us a net credit.
The aim is to get a good part of that credit as PROFIT over the month.
The setup should be done once the market settles a bit after initial volatility. Let us take the trades around 11:30 am.
Trade cautiously, trade profitably.
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.