How to trade Nifty/Bank Nifty Weekly Option Intraday trades?

*Intraday Option Guidelines with effect from 20th November, 2024.

Index Option Intra Trading guidelines:

All our trading levels are given in advance, based on the movement and all the orders should be placed in advance with decimal points in the system. There is no pre-market call or current market price-CMP

Preferred capital: 45-60k with 2 lots (1+1) system, based on the capital availability, multiple lots can be taken.

First will try Nifty Weekly Option, once the trade is over then Bank Nifty Monthly Option may come.

Risk to reward minimum 1:1 and maximum 1:2 with extension targets.

Slippage: Slippage means adding some extra points with the entry and stop loss levels.

Nifty Option Lot size: 75 and BN Option lot size: 30

No. of trades per day 2-3 trades in Nifty weekly option and 1-2 trades in Bank Nifty Monthly Option.

From 20th November, 2024, Nifty Option weekly expiry is avaiable with revised lot size i.e., 75 and Bank Nifty Option weekly expiry will not be available, only mothly expiry is available with the revised lot size i.e., 30. 

Nifty Intra Weekly Option: Lot size-75

Two Levels Buy: First Level Buy with slippage 1 lot and Low Level Buy 1 lot. First level to Low level there will be a premium difference of 20-25 points. 

Targets 20-30 points from the first level buy, low level buy can be booked profit 9-14 points. Extension targets are possible for 40-60 points, if hedging is not goven or given as an optional.

Stop loss 20-25 points from without slippage levels

Slippage: Slippage means adding some extra poits from the entry levels. Slippage for First Level and Low level buy 3 points. Apply 6 points slippage for stop loss i.e., from the Stop loss deduct 6 points, to avoid any spike movement, else it may trigger the stop loss. Slippage for target is 1 point below from the target price.

Profit Booking: We should hold the first level buy for the full targets for 20-30 points and low level buy should be booked profit for 9-14 points.

Hedging Strategy: Hedging means, if the given position for an example PE-PUT option is not moving in our favour then, we may give contra position i.e., CE- CALL option and vice versa, we suggest the trader to take hedging to avoid the loss.

Hedging Strategy: If, the premium not moves as expected from the firet level entry, then the hedging will be given, the same may be taken with full slippage 3 points, immediately as per the message and both position i.e., CALL and PUT should be hold with stop loss. Either one will reach full targets, the other one will moves below near low level buy and bounce back to the first level that time it must be exited, as per our follow up message. Also, note that the Hedging must be equal, if one lot taken at first level then, the hedging also should be taken 1 lot, if 2 lots taken in one position, then hedging also should be taken 2 lots. Hedging should be taken at low level with slippage points i.e., 3 points and same may be booked profit for 9-14 points and must hold first level buy for the the full target.

Example:

Nifty 24800 PE Buy near 200-180 Keep SL below 175 CMP 195 (this is the message pattern)

Maximum slippage is allowed 3 points

First level Buy 1 lot to be placed between Rs.203-200 and low level Buy 1 lot can be placed between Rs.183-180. Mostly the stop loss will be below 175. If, the Option price moves to the low level i.e, 180 and moves above then, the same may  be booked profit 9-14 points i.e, 189-194 and hold the first level buy for full target i.e., 220-230

Nifty 24600 CE Hedging Buy near 190-170 (this is the message pattern)

Hedging first level Buy 1 lot to be placed between Rs.193-190 and low level Buy 1 lot can be placed Rs.173-170. Mostly the stop loss will be below 165. The low level buy should be booked profit for 9-14 points and hold first level entry for the full target.

When to book the profit and exit the other position?

Once the hedging taken then, both PE and CE must be hold for full targets, either one will reach the full target, that time the another position may reach the low level, from the low level this will bounce back to the first level, that time we should exit the other positon with profit/at cost or with minimum loss, as per our advice.

Bank Nifty Monthly Option : Lot size-30

Slippage: Slippage means adding some extra points with the entry levels. First Level slippage 6 points, low level buy slippage 6 points, apply slippage for stop loss also i.e., from the stop loss level deduct 10 points, to avoid any spike movement else, it may trigger the stop loss.

Two Levels Buy: First Level Buy with slippage 1 lot and Low Level Buy 1 lot. First level to Low level there will be a premium difference of 35-40 points. 

Targets 30-45 points from the first level buy, low level buy can be booked profit 15-20 points. Extension targets are possible for 60-90 points, if hedging is not given or given as an optional.

Stop loss 40 points from without slippage levels

Profit Booking: We should hold the first level buy for the full targets for 30-45 points and low level buy should be booked profit for 15-25 points.

Hedging Strategy: Hedging means, if the given position for an example PE-PUT option is not moving in our favour then, we may give contra position i.e., CE- CALL option and vice versa, we suggest the trader to take hedging to avoid the loss.

Hedging Strategy: If, the premium not moves as expected from the firet level entry, then the hedging will be given, the same may be taken with full slippage 6 points, immediately as per the message and both position i.e., CALL and PUT should be hold with stop loss. Either one will reach full targets, the other one will moves below near low level buy and bounce back to the first level that time it must be exited, as per our follow up message. Also, note that the Hedging must be equal, if one lot taken at first level then, the hedging also should be taken 1 lot, if 2 lots taken in one position, then hedging also should be taken 2 lots. Hedging should be taken at low level with slippage points i.e., 6 points and same may be booked profit for 15-25 points and must hold first level buy for the the full target.

Example:

BN 51600 CE Buy near Rs.360-325 CMP 420 (this is the message pattern)

Maximum slippage is allowed 6 points

First Level Buy 1 lot to be placed between Rs.366-360 and low level buy between Rs.331-325 can be placed. The low level buy should be booked profit Mostly the stop loss, will be below 320. 

BN 51900 PE hedging Buy near 385-350 (this is the message pattern)

Hedging first level Buy 1 lot to be placed between Rs.391-385 and low level Buy 1 lot can be placed Rs.356-350. Mostly the stop loss will be below 340. The low level buy should be booked profit for 15-25 points and hold the first level buy for the full target.

When to book the profit and exit the other position?

Once the hedging taken then, both PE and CE must be hold for full targets, either one will reach the full target, that time the another position may reach the next level or low level i.e., near to stop loss, from the next or stop loss this will bounce back to higher levels that time we should exit the other positon with profit or without loss, as per our advice.

*Intraday Option Guidelines revised on 10th November, 2024.

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How to trade Nifty/Bank Nifty Weekly Option Intraday trades?*

*Intraday Option Guidelines revised on 20th May 2024.

Index Option Intra Trading guidelines:

All our trading levels are given in advance, based on the movement and all the orders should be placed in advance with decimal points in the system. There is no pre-market call or current market price-CMP

Preferred capital: 30-50k with 2 lots system, based on the capital availability, multiple lots can be taken.

First will try Nifty Option, once the trade is over then Bank Nifty option may come.

Risk to reward minimum 1:1 and maximum 1:2 with extension targets.

Slippage: Slippage means adding some extra points with the entry levels.

Nifty Option Lot size: 25 and BN Option lot size: 15

Nifty Intra Option:

First Trade with Hedging Strategy:

Hedging Strategy: Hedging means, if the given position for an example PE-PUT option is not moving in our favour then, we may give contra position i.e., CE- CALL option and vice versa, we suggest the trader to take hedging to avoid the loss.

Two/three Levels Buy: First Level Buy with slippage 2 lots-Next Level Buy 1 or 2 lots. First level to next level there will be a difference of 20 points. Some time, we may try a low level buy 1 or 2 lots i.e., near stop loss with 2-4 points slippage.

Targets 25-30 points from the first level buy, next and low level buy can be booked profit 8-14 points.

Stop loss 25-30 pts from without slippage levels

Slippage: First Level buy 5-6 points, next level or low level buy 2-4 points, apply full slippage for stop loss also i.e., from the Stop loss deduct 5-6 points, to avoid any spike movement, else it may trigger the stop loss.

Profit Booking: We should hold the first level buy for the full targets for 25-30 points and next or low level buy should be booked profit for 8-14 points.

Hedging Strategy:  First level buy with slippage if, not moves above 8-12 points then hedging will be given, then the same must be taken with full slippage 5-6 points, immediately as per the message and both position should be hold with stop loss. Either one will reach full targets, the other one will move/bounce back up from the next/stop loss to the higher levels that time it must be exited, as per our follow up message. Hedging must be equal, if two lots are holding in one position, then hedging also should be taken 2 lots. Hedging next/low level buy also should be taken with slippage point i.e., 2-4 points and same may be booked profit for 8-14 points.

Example:

Nifty 22500 PE Buy near 180-160, CMP 195 (this is the message pattern)

First level Buy 2 lots to be placed between Rs.185-186 and next level Buy 1 or 2 lots can be placed between Rs.162-164. Mostly the stop loss will be below 150, the low level 1 or 2 lots also can be placed near Rs.150 with slippage 2-4 points i.e., 152-154.

Nifty 22300 CE Hedging Buy near 190-170 (this is the message pattern)

Hedging first level Buy 2 lots to be placed between Rs.195-196 and next level Buy 1 or 2 lots can be placed Rs.172-174. Mostly the stop loss will be below 160, the low level 1 or 2 lots also can be placed near Rs.162-164

When to book the profit and exit the other position?

Once the hedging taken then, both PE and CE must be hold for full targets, either one will reach the full target, that time the another position may reach the next level or low level i.e., near to stop loss, from the next or stop loss this will bounce back to higher levels that time we should exit the other positon with profit or without loss, as per our advice.

Nifty Option-Second trade without Hedging:

First level buy two (2) lots with slippage points 2-3 points extra from the entry level with stop loss 15-20 points, target also 15-20 points and extension targets 30-40 points. Also low level Buy 2 lots near stop loss also can be taken with same slippage 2-3 points, the same may be booked profit for 8-14 points., the low level buy may be avoided if, the first level reaches the full/extension targets.

Example:

Nifty 22500 PE Buy near 170 Keep SL below 150, CMP 185 (this is the message pattern)

Slippage allowed 2-3 points  hence, first level Buy 2 lots to be placed between Rs.170-173 and low level Buy 2 lots can be placed between Rs.150-153.

Bank Nifty Intra Option:

First trade with Hedging Strategy:

Hedging Strategy: Hedging means if the given position for an example PE-PUT option is not moving in our favour to the full targets then, we may give contra position i.e., CE- CALL option and vice versa, we suggest to take hedging to avoid the loss.

Slippage: Slippage means adding some extra points with the entry levels. First Level slippage 8-10 points, next/low level buy slippage 4-5 points, apply full slippage for stop loss also i.e., from the stop loss level deduct 8-10 points, to avoid any spike movement else, it may trigger the stop loss.

Three Level Buy: First Level Buy with slippage 2 lots -Next Level Buy 1 or 2 lots with 4-5 points slippage, Low level buy 1 or 2 lots with 4-5 points slippage. Frist level to Next level there will be a difference of 35 points. Once the stop loss released low level buy can be placed in advance.

Targets 50-60 points and Stop loss also 50-60 pts from the first level buy. Extension targets is 80-100 points from the first level.

Example:

BN 47600 CE Buy near Rs.360-325 CMP 420 (this is the message pattern)

Slippage allowed 8-10 points

First Level Buy two (2) lots to be placed between Rs.368-370 and next level buy between Rs.324-325 can be placed. Mostly the stop loss, will be 300. Once the stop loss released low level Buy can be placed near 300 with 4-5 points slippage i.e., 301-305.

BN 47900 PE hedging Buy near 385-350 (this is the message pattern)

Hedging first level Buy 2 lots to be placed between Rs.393-395 and next level Buy 1 or 2 lots can be placed Rs.354-355. Mostly the stop loss will be below 325, the low level 1 or 2 lots also can be placed near Rs.324-325.

When to book the profit and exit the other position?

Once the hedging taken then, both PE and CE must be hold for full targets, either one will reach the full target, that time the another position may reach the next level or low level i.e., near to stop loss, from the next or stop loss this will bounce back to higher levels that time we should exit the other positon with profit or without loss, as per our advice.

Bank Nifty Option-Second trade without Hedging:

First level buy two (2) lots can be taken with slippage points 5-8 points extra from the entry levels, the stop loss will be 25-40 points, target is 30-50 points and extension targets 60-90 points. Also, low level Buy 2 lots near stop loss can be taken with 3-5 points slippage and the same should be booked profit for 20-30 points, the low level buy may be avoided if the first level reaches the full/extension targets.

Example:

BN 47600 CE Buy near 360 Keep SL below 320, CMP 395 (this is the message pattern)

Slippage allowed first level buy 5-8 points and low level buy 3-5 points hence, first level Buy 2 lots to be placed between Rs.365-368 and low level Buy 2 lots can be placed between Rs.323-325.

*Intraday Option Guidelines revised on 20th May 2024.