Option selling or Option writing strategy for Nifty50
Weekly profit target (1500₹ - 2000₹ per 2 lots)
16th January 2020, Thursday
At 3.10 PM
Nifty 12,355Our strategy is to select call and put options of 200 points ahead of current Nifty strike price. Current Nifty strike price is around 12350 so we will select call option of 12550 and put option of 12150
Sell
12,550 call at 9.00 ₹ and
Sell
12,150 put at 11.00 ₹
17th January 2020, Friday
At 3.30 PM
Nifty 12,352
Not much movement in Nifty.
hold
12,550 call at 6.70 ₹ (in profit)
hold
12,150 put at 10.75 ₹ (in profit)
Not much movement in Nifty.
hold
12,550 call at 6.70 ₹ (in profit)
hold
12,150 put at 10.75 ₹ (in profit)
20th January 2020, Monday
At 3.30 PM
Nifty 12,224
Nifty is down by 127 points
Buy
12,550 call at 2.50 ₹ (Profit margin 6.50₹ , profit of one lot around 475₹)
hold
12,150 put at 21.50 ₹ (in loss)
Sell
12,400 call at 13.00 ₹
Nifty is down by 127 points
Buy
12,550 call at 2.50 ₹ (Profit margin 6.50₹ , profit of one lot around 475₹)
hold
12,150 put at 21.50 ₹ (in loss)
Sell
12,400 call at 13.00 ₹
21st January 2020, Tuesday
At 3.30 PM
Nifty 12,169
Nifty is down by 54 points
Buy
12,400 call at 3.75 ₹ (Profit margin 9.25 ₹ , profit of one lot around 690₹)
hold
12,150 put at 33.50 ₹ (in loss)
Sell
12,300 call at 12.00 ₹
Nifty is down by 54 points
Buy
12,400 call at 3.75 ₹ (Profit margin 9.25 ₹ , profit of one lot around 690₹)
hold
12,150 put at 33.50 ₹ (in loss)
Sell
12,300 call at 12.00 ₹
22nd January 2020, Wednesday
At 1.00 PM
Nifty12,137
Buy 12,300 call at 4.50 ₹ (Profit margin 7.50 ₹, profit of one lot around 550₹)
Sell 12,200 call at 17 ₹
hold 12,150 put at 42 ₹ (in loss)
Buy 12,300 call at 4.50 ₹ (Profit margin 7.50 ₹, profit of one lot around 550₹)
Sell 12,200 call at 17 ₹
hold 12,150 put at 42 ₹ (in loss)
At 3.30 PM
Nifty12,108
Nifty was down by around 61 points
hold 12,200 call at 10.89 ₹ (in profit)
hold 12,150 put at 51 ₹ (in loss)
Nifty was down by around 61 points
hold 12,200 call at 10.89 ₹ (in profit)
hold 12,150 put at 51 ₹ (in loss)
23rd January 2020, Thursday
At 11.00 AM
Nifty12,115
Buy 12,200 call at 1 ₹ (Profit margin 16 ₹, profit of one lot around 1200₹)
hold 12,150 put at 30 ₹ (in loss)
At 1.00 PM
Nifty12,163
Buy 12,150 put at 7 ₹ (Profit margin 4 ₹, profit of one lot around 300₹)
Summary of week
12,550 call sold at 9.00 ₹ and bought at 2.50 ₹ (Profit 475₹ )
12,150 put sold at 11.00 ₹ and bought at 7.00 ₹ (Profit 300 ₹ )
12,400 call sold at 13.00 ₹ and bought at 3.75 ₹ (Profit 690 ₹ )
12.300 call sold at 12.00 ₹ and bought at 4.50 ₹ (Profit 550 ₹ )
12,200 call sold at 17.00 ₹ and bought at 1.00 ₹ (Profit 1200 ₹ )
Total profit = 3215 ₹
12,150 put sold at 11.00 ₹ and bought at 7.00 ₹ (Profit 300 ₹ )
12,400 call sold at 13.00 ₹ and bought at 3.75 ₹ (Profit 690 ₹ )
12.300 call sold at 12.00 ₹ and bought at 4.50 ₹ (Profit 550 ₹ )
12,200 call sold at 17.00 ₹ and bought at 1.00 ₹ (Profit 1200 ₹ )
Total profit = 3215 ₹
TARGET ACHIEVED
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