7 Experts Strategy to Trade in Bank Nifty
Bank Nifty is an index which includes the top 12 banking companies listed on NSE.
Why Bank Nifty?
Individuals purchase the Bank Nifty options to indirectly invest in banking companies or as a hedge to earn returns from the banking sector.
Lot Size of Bank Nifty Contracts
The no. of shares you buy in 1 transaction is the lot size. For Bank Nifty contracts, it is 25. You can trade in its multiples, i.e., 25, 50, 75, etc.
5-minute Candlestick Chart
This strategy is for intraday traders. To implement it, pick a point where the first two candles are either bullish or bearish.
Sell Trades & Buy Trades
During Gap Down pricing, wait for the gap to be filled & then place a sell order and vice-versa for a buy trade.
Buy a Call & Put option at same strike price.
Upper Breakeven = Call option’s strike price + premium amount.
Lower Breakeven = Put option’s strike price + premium paid.
The short straddle involves selling a call and put option with the same strike price & expiration, profiting from low price movement & volatility.
Naked Calls or Puts
During a price rise, buy a naked call option, and when index starts declining, use a naked put option for gains. Ensure placing a stop-loss order in case of price reversal.
Bull Call Spread
During moderately bullish markets, buy an ATM call and sell an OTM call with the same expiry. This creates a range that limits losses & maximises profits.
Bear Call Spread
Useful during mildly bearish sentiments. Sell an ITM call option & purchase an OTM call option in order to hedge against unexpected price rises.
Long Call Butterfly
It combines long & short call options at different strikes to get profit from limited priced movements & reduced volatility.
Point to Remember
Start small, be patient, and gradually build your skills to unleash the full potential of intraday trading.
Earn 9 - 11%
More Wint Stories
Steps to Buy the RBI Floating Bond Online
Sovereign Gold Bond Scheme 2023-24 (Series 2): Price, Dates, Benefits