-> Never sell option when VIX is increasing intraday.

That is a day to
buy options¬
¬
Positional Stock Selection¬
==========================¬
-> Always invest on the story of the stock like Reliance, etc. Dont
invest on price¬
-> Always have SL for investment stocks also. SL should be - Two candles
closing below 13 day moving average on monthly chart¬
-> Always buy sector leader. Check Telecom, Paint, Cement sector¬
-> 1/2 shares is enough for changing life¬
-> Dont have more than 10-12 stocks in portfolio¬
-> If buying one share for huge money, always sell a far OTM option
every month. Always hedge¬
-> Always invest near convergence of moving averages¬
-> What is Convergence - All the moving areas are very close to each
other or overlapping¬
¬
¬
¬
20:20 Strategy¬
==============¬
-> Only for expiry day trade¬
-> Around 11:15 buy CE & PE of around 20 Rs each¬
-> Total premium paid will be around 40 & SL would be 17¬
-> This works as all premium decay is already done. Now further fall
will come only after 2:15 - 2:30¬
-> Since VIX is 20+, market will move and this will ensure we get return ¬
¬
Eg:- Buy 11100 CE at 20, Buy 11000 PE at 20 .. Total premium is 20+20=40¬
SL of 17 now means - say CE price is 16 & PE price is 1 or PE is 12 & CE
price is 5¬
¬
¬
¬
Hedge 11¬
=========¬
-> Only do on monthly. Avoid weekly unless expert¬
-> Can be done for intraday or positional both.¬
-> Can also be done in Bank Nifty¬
-> Design - The idea is we should make money what ever market does. Use
future price to make strategy¬
-> Buy ITM put option with very little hawa (less than 100 time value is
good), and sell an OTM put option, whose value is closer to the hawa in
the ITM put option but should not be very close to the current price¬
¬
-> Sell OTM call option greater than the strike of ITM put option and
buy same strike call option of next month. It is ideal to select strikes
which are difficult to be reach in this month expiry.¬
-> If doing at the starting of the month maintain 700-1000 points
distance on the Call side, since vix is high. Distance will reduce when
vix reduces¬
-> If doing post mid month the maintain 400-500 points distance on the
Call side¬
¬
Eg:- Let say spot is around 10600 on 3rd July. Then the trade is as
follows:-¬
¬
11200 July Expiry CE sell at 45.7 - 5 Lot¬
11200 Aug Expiry CE Buy at 121.0 - 5 Lot¬
11000 July Expiry PE Buy at 548.9 - 1 Lot¬
10000 July Expiry PE sell at 114.25 - 1 Lot¬
¬
Note: ¬
1) Calculate the number of lots of the call option such that when the
market goes up the loss in the ITM put option should also be recovered.¬
¬
¬
¬
Bank Nifty Selling - If have 60K to 1 lakh capital¬
==================================================¬
-> Do only 15th of the month, as premium is not added after mid month¬
-> For intraday sell both side strikes not too far from current price
after 15th of the month¬
-> if doing positional strike should be far¬
-> SL sum would be 200-300. If more loss then something wrong in trade.¬
-> The option giving loss means that day market is trending that side.
So a naked trade with VWAP as SL or a hedge position on the trending
side can be taken.¬
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