Weekly Option Spread Trade

Short Call Ratio (Front spreads) Bank Nifty Index Spread

2nd to 3rd August 2016

Longer Term Technical Analysis

• Bank Nifty has high low range on weekly bars and 5 bar ATR around 550-590 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

Short Term Technical Analysis

Trade Management

• I sold the spread at credit of INR 680/spread• I bought the spread next day around 2:41pm

to square off the position discretionarily due to a event trigger which forced me to be cautious

Intuition

• No

Review

• I exited due to a trigger of event based news for the next day and if GST passed I could potentially would have been in the position of unlimited losses if prices would have traded above 19000

• I exited at 2:41pm and spread collapsed and expired worthless

• Over to next weekly expiry