Hi traders 😊...................
🛑 Shorting strikes purely based on India vix volatility index
🛑 India vix volatility index short strangle strike's
🛑India Vix closed at 18.4 . which means premiums were high on both the sides of options . India vix measures the expected volatility for next one year.
means Nifty can go up by +18.4% towards upside from today's close to next one year and other chance -18.4% can go down by next one year
🛑If we calculate India vix for day volatility or expected swing in both side for next day the we will get
◽ Here banknifty can go upto max +360 points from previous close 37425
means it may can swing up to hardly 37800(not exactly add previous close ie .374253+ expected movement points ie . 360)
◽ Or can go down by -360 points from previous close 37425 and it may be swing down to 37000
( Caution it doesn't include any sentiment ie . Global or economical or news)
◽Indian Vix volatility index works best in range bound market and helps option sellers
◽ Now clearly we get one strike from to short ie .37800 on CALL side
◽ Another one in downside we get one strike ie . 37000 on PUT side
◽we can clearly observe that market maybe trade between this range so I will going to do this
Short strangle means selling OTM strikes of PE And CE
◽ short CALL
➡️ Sell 37800 CE with stop loss of 37800 (simply exist from position CE after breakout of 37800 )
◽Short PUT
➡️ Sell 37000 PE with the Stoploss of 37300 (or in other words : exist from PUT position if breakdown of 37300 which crucial support zone )
➡️ If sold both strikes (or if you do short strangle)
Key important you must have to follow
◽ Exist from one position if breakdown/breakout happens and keep it another side or another position until reach the target
◽ If breakout happens at (37800)exist from Position of CE or buy back CE or close CE selling position
Then keep short side PE to reach Target of 37950
◽ If breakdown happens (at 37300 ) then exist from Position PE or buyback PE or Close Position PE
Then keep it selling CALL (CE) until reach Target level 37000
🛑You can also short only side either CALL or P
PUT and follow respective Stoploss points
(Personally I will recommend Sell CALL or CE becaut fear market is higher )
🛑Make sure your capital is 1.6 L rupees to execute this strategy
🛑Any doubts regarding on this comment below I will definitely help you guy's
And if I'm wrong please let me know in comment section I will definitely correct my mistake
◽ Thanks for reading and do like it and follow for more and give reputation it will boost mine confidence
◽have nice day 😊
🛑 Shorting strikes purely based on India vix volatility index
🛑 India vix volatility index short strangle strike's
🛑India Vix closed at 18.4 . which means premiums were high on both the sides of options . India vix measures the expected volatility for next one year.
means Nifty can go up by +18.4% towards upside from today's close to next one year and other chance -18.4% can go down by next one year
🛑If we calculate India vix for day volatility or expected swing in both side for next day the we will get
◽ Here banknifty can go upto max +360 points from previous close 37425
means it may can swing up to hardly 37800(not exactly add previous close ie .374253+ expected movement points ie . 360)
◽ Or can go down by -360 points from previous close 37425 and it may be swing down to 37000
( Caution it doesn't include any sentiment ie . Global or economical or news)
◽Indian Vix volatility index works best in range bound market and helps option sellers
◽ Now clearly we get one strike from to short ie .37800 on CALL side
◽ Another one in downside we get one strike ie . 37000 on PUT side
◽we can clearly observe that market maybe trade between this range so I will going to do this
Short strangle means selling OTM strikes of PE And CE
◽ short CALL
➡️ Sell 37800 CE with stop loss of 37800 (simply exist from position CE after breakout of 37800 )
◽Short PUT
➡️ Sell 37000 PE with the Stoploss of 37300 (or in other words : exist from PUT position if breakdown of 37300 which crucial support zone )
➡️ If sold both strikes (or if you do short strangle)
Key important you must have to follow
◽ Exist from one position if breakdown/breakout happens and keep it another side or another position until reach the target
◽ If breakout happens at (37800)exist from Position of CE or buy back CE or close CE selling position
Then keep short side PE to reach Target of 37950
◽ If breakdown happens (at 37300 ) then exist from Position PE or buyback PE or Close Position PE
Then keep it selling CALL (CE) until reach Target level 37000
🛑You can also short only side either CALL or P
PUT and follow respective Stoploss points
(Personally I will recommend Sell CALL or CE becaut fear market is higher )
🛑Make sure your capital is 1.6 L rupees to execute this strategy
🛑Any doubts regarding on this comment below I will definitely help you guy's
And if I'm wrong please let me know in comment section I will definitely correct my mistake
◽ Thanks for reading and do like it and follow for more and give reputation it will boost mine confidence
◽have nice day 😊