Time always decays and hence the THETA DECAY in option is UNIVERSAL TRUTH. Capitalize this THETA DECAY in any way…..
- DIRECTIONAL OPTION SELL
- BULL SPREAD
- BEAR SPREAD etc….
BANKNIFTY Max CALL OI on Friday = 37000 strike closed at 120 +
BANKNIFTY Max PUT OI on Friday = 36000 strike closed at 300
Total Premium Collected = Rs 420
Expiry Premium = 83 + 0.05 = Rs 83.05
Net Profit Points= 420 – 83 = 337
Net Profit = 25*337 = Rs 8425/-
to know more about How to manage a STRANGLE…..
High volatility is your Friend on the Expiry day. Follow the two Steps Option Strategy:
Repeat this process for CALL as well as PUT Option and hold them till Expiry.
October 2021 Performance tested on BANKNIFTY:
Total: 3900% return. This means, Investment of Rs 1000 has the potential to turn out to Rs 39000/-. This is a very HIGH RISK setup and accuracy is almost 50% to 60%. You must use this strategy for 1% to 2% of your Capital.