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  • Aladin Ka Chirag

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    avdhesk
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    This document outlines a strategy for trading options when the strike price opens equal to either the high or low price of the underlying asset. It recommends selling call options if the strike price matches the open and high, and buying put options if the strike price matches the open and low. It provides examples and conditions for executing this strategy, such as only taking positions after 9:45am in large gaps up or down, using weekly expiries, and setting stop losses and profit targets.

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    ALADIN KA CHIRAG

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    This document outlines a strategy for trading options when the strike price opens equal to either the high or low price of the underlying asset. It recommends selling call options if the strike price matches the open and high, and buying put options if the strike price matches the open and low. It provides examples and conditions for executing this strategy, such as only taking positions after 9:45am in large gaps up or down, using weekly expiries, and setting stop losses and profit targets.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    35 views5 pages

    Aladin Ka Chirag

    Uploaded by

    avdhesk
    This document outlines a strategy for trading options when the strike price opens equal to either the high or low price of the underlying asset. It recommends selling call options if the strike price matches the open and high, and buying put options if the strike price matches the open and low. It provides examples and conditions for executing this strategy, such as only taking positions after 9:45am in large gaps up or down, using weekly expiries, and setting stop losses and profit targets.

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    © All Rights Reserved
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    of 5

    ALADIN KA CHIRAG OPTION

    STRATEGY
    Execution

    1. IF OTM / ITM OPTION STRIKES OPEN & LOW IS SAME


    THEN WE WILL BUY .

    2. IF OTM / ITM OPTION STRIKES OPEN & HIGH IS SAME


    THEN WE WILL SELL.
    EXECUTION - EXAMPLE

    IF OPEN = HIGH

    SELL - NIFTY 23
    DEC 17000 CE
    EXECUTION - EXAMPLE

    IF OPEN = LOW

    BUY - NIFTY 23 DEC


    16800 PE
    CONDITIONS

    1. TAKE POSITIONS AFTER 9.45 am IN BIG GAPUP & BIG


    GAPDOWN.
    2. PREMIUM PRICE SHOULD BE IN THE RANGE OF 75 TO
    150.
    3. EXECUTE THIS TRADE IN WEEKLY EXPIRY
    4. SL = IF YOU ARE SELLING THEN DAY HIGH WILL BE SL
    AND IF YOU ARE BUYING THEN DAY LOW WILL BE SL
    5. TARGET = 20 – 30 POINTS AFTER THAT TRAIL IT.
    6. When market opens FLAT – Probablity HIGHER

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