26th Aug 2016

Weekly Option Spread Trade

Short Strangle Bank Nifty Index Spread

26th to 29th August 2016

Longer Term Technical Analysis

• Bank Nifty has high low range on weekly bars and 5 bar ATR around 490-650 range

• We can use 600 range as a guide to implement weekly expiry option spread trade

Intermediate Term Technical Analysis

• 1 quarter regression VS 1 quarter price average indicates Bank Nifty to be trading in a Uptrend

Option Spread Greek Management (Trade Management)

Short Term Technical Analysis (Trade Management)

Short Term Technical Analysis (Trade Management)

Short Term Technical Analysis (Trade Management)

• Implemented strangle• Legged into the strangle to arrive at average

net credit of +60• Exited the spread at -33.8

Intuition

• No

Review

• I was nervous while holding it overnight as it was a event weekend i.e. Central Bankers Meet of all countries

• Overall It was a great trade• Over to next expiry next week