Nifty is an index of the 50 Stocks that includes stocks like Hindalco, Tata Steel, Reliance Industries Etc. Nifty was introduced on April 21, 1996, by National Stock Exchange. It is the broad index of National Stock Exchange ( NSE) . NSE is a leading stock exchange In India. This is the sector where most of the traders work and make a good profit in nifty option tips. This article will help you to know about the different nifty option trading strategies and help you to understand how you can make maximum profit in bank nifty option / nifty option trading by working with one of the best SEBI Registered Research Analyst.
There are lots of traders working in nifty option without any tips/ strategy and due to high volatility in options and with no proper knowledge about option market they vanish their entire capital and curse share market after that with words like “ no one can earn money from the share market”. There are 2 Points of view available on this, That if we are trading in nifty options we may make money about 200-300% of capital traded within a day, and the next day you may end up losing a complete amount in 1 trading call. Nifty option is a highly volatile market where you need to follow proper stop loss, tips, strategies, and targets.
The basic strategy that we follow and we want our all clients to follow with us: Trade Daily with same lots of size, so that you can maintain your risk-reward ratio either its nifty option tips or call put option tips.
Strategy 1
This strategy is basically for the traders who want to do nifty option tips intraday trading only:
First, you want to keep mum for the first 25 Minutes in the market. It was seen by us that people in hurry make unnecessary trade in the opening market and end up with a loss or make some position which ends up in 0 Only. So our Strategy starts from 09:40 Am, At 09:40 we will check Pivot, Support, And Resistance for Nifty Spot and As per the current market price available, we will find the Levels for today. There are lots of free websites available in India from where you can check Support , resistance, and Pivot points. An important point to note here is that this strategy is for the option intraday traders only, not for the swing traders or positional traders.
So now we have all the levels for nifty option for today and we will place all the levels on charts and place alert at the same time. So whenever our levels breakout, we will get the alert from our terminal and we are ready for trade. The key point here is we are getting levels for the nifty spot and now we need to conver the position from nifty spot to nifty option. Mostly we recommend our traders to trade in the money call/put option only or sometimes at the money call/ put option. Trading in out of the money option is advisable only when there are some big upcoming events in the market – like budget session, RBI News, Some Finance minister meeting . When premiums are very high, in that case only we can think of out-of-the-money option trading.
Strategy 2
This strategy is for the traders who don’t have time to watch the nifty options market the whole day and doing any job or business. This strategy can be adopted by intraday and positional traders as well. There are some Short strangle strategy in the market but which requires lots of knowledge and lots of capital to trade with. In this article, we are sharing some of the basic knowledgeable option trading strategies only.
Buying Call Option And Put Option at the same time, is the basic strategy that was adopted by most of the traders who wants to earn little profit without any risk. For example, if you Think nifty Trend up, and here if we buy Nifty @ the money call option then we are at the proper risk to lose our complete premium amount if the nifty goes down. So what we need to do here to cope with the loss if nifty goes down, so here is the answer for you, We will sell Nifty out of the money call option which will recover our premium amount if we go wrong. Same as in the other case if we look trend down, we will buy the PUT option and sell out of the money put option This is the strategy for safe traders and mostly adapted by positional traders only.
Conclusion: We can earn money from the bank nifty option tips trading, if we are trading with proper knowledge, proper timing, proper levels, and when we follow the proper strategy. If we are doing any trade-in hustle then it's guaranteed that you will end up with heavy losses and vanish your capital completely.