I have received requests from many traders to teach them a strategy to trade the expiry day. I will discuss a very simple expiry day nifty option strategy that can safely fetch you 20 times to 50 times even 100 times rertuns. This strategy can be implemented on Nifty OR Bank Nifty options.
Remember expiry day is a critical day to trade where actually market remains very noisy. Many traders lose money on expiry day. But there can be immense profit if you can trade expiry effectively. In fact stock market is like a sword. You need to know how to handle it properly.
Yes this strategy can make your 1 rupee to grow to 20-50 OR even 100 rupee in no time. This is the power of expiry day nifty option strategy. You need not to be a big technical analyst to trade Nifty on the expiry. Only knowledge you know is where actually Nifty is expiring.
How to know Nifty expiry levels in 5 minutes?
You can use Nifty Open Interest Charts to know Nifty expiry levels almost instantly. Just open this page on expiry day morning. Concentrate the first image. Locate the point when last time red bar is longer than blue bar and the first time blue bar is longer than red bar. The red bars are put open interest and blue bars are call open interest. See the image below:
Here 9400 is last when put open interest is greater than call open interest. So expiry will be above 9400. And 9500 is first when call open interest is greater than put open interest. So expiry will be below 9500.
Now, keep 9400CE and 9500PE of same month expiry in your terminal. The real game starts after 1:30PM. If you get Nifty below 9400 simply buy a 9400CE. You will get it at 1-5 rupees. Nifty will 100% rise above 9400 and you can get 10/20/50 even 100 rupees of your call option.
Similarly in the expiry day nifty option strategy if you get Nifty above 9500, you know Nifty will not expire above 9500. So simply buy a 9500PE. You will again get it within 1-5 rupees. Nifty will 100% fall below 9500 and you will get big gains.
Remember: Do not trade more than 2% of your capital in this strategy. Because there will be no stop loss. Your maximum loss in this expiry day nifty option strategy will be limited to the premium you are paying for the option. You can also refine Nifty expiry levels using the 50 point open interest values like 9450. In that case you need to trade 9450 call OR put. If you want to trade Bank Nifty in this strategy please visit the Bank Nifty Open Interest.
Indrajit is a professional blogger and trading system developer. Amibroker expert, WordPress expert, SEO expert and stock market analyst.Trading since 2002, he has started the journey of StockManiacs.net on 2008. He follows Indian and world stock markets closely.
Categories: Trading Strategy