Derivatives - BANK Nifty - Options Trading Strategy in MARKETS - I have tried hedge strategy in the past on Nifty Options. I made big gains during 2009 elections when Nifty ...
I have tried hedge strategy in the past on Nifty Options. I made big gains during 2009 elections when Nifty hit Upper Circuit.
I also made some losses in Nifty Options hedge in months when there was not much movement. Those were times when i was still an amateur trader.
In a humble way, i can say that my knowledge has improved over time as a Trader and as an Investor.
Bank Nifty more often than not, gives more fluctuations than Nifty and may be better suited for Options hedge strategy.
I am going to start trying it out in the next 12 months and i will share my positions in this forum.
Below are some of the important things to keep in mind
Options Premium dips the maximum over the weekend on both sides. Enter a new hedge position every Monday and exit by Friday whenever you feel is the optimal exit.
Place equal amounts of money on both sides of the hedge
While trading close to expiry, try to safeguard your capital. Avoid last 2 weeks before expiry to be on the safer side
Don't leave positions one sided, unless you have booked all the Capital or you are sure of the movement
Watch the Below Video for Intra-Day Options Strategy on Bank Nifty