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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