Bank Nifty Trading Strategy Today: How to trade Bank Nifty options on September 16? Rahul Ghose suggests this strategy

Bank Nifty Trading Strategy Today: The Bank Nifty index outperformed the frontline indices on September 13 and ended the session 165.65 points, or 0.32%, higher at 51,938.05.

“Bank Nifty after a few days of down move reversed and had a resistance at 51,800 level. After Thursday’s upside move, the index broke this resistance at 51,800 levels, and is indicating a shift in trend and also showing signs of bullishness,” said Rahul Ghose, CEO of Hedged.in.

According to him, option writing data shows increased writing in puts after the rally, indicating bullishness to continue in the index.

With the view on the upside, Ghose suggests a low-risk Bank Nifty Options strategy from hedged.in which makes money if the Bank Nifty trades above 52,400 by the end of this week’s expiry.

“Even if the Bank Nifty goes down, the maximum risk in the trade is ₹750 only,” Ghose said.

Here’s Bank Nifty options trading strategy from Rahul Ghose:

Calendar Call Butterfly

Trade Structure:

> Buy 1 lot of the 18th Sep expiry 52200 CE at CMP

> Sell 1 lot of the 18th Sep expiry 52400 CE at CMP

> Buy 1 lot of the 25th Sep expiry 53200 CE at CMP

> Sell 1 lot of the 25th Sep expiry 53000 CE at CMP

Trade Rules:

The capital required in the trade is ₹32,000. This trade can be entered on Monday if Bank Nifty is trading between the levels of 51,800 and 52,100. The maximum loss in the trade is ₹750 and one can look for a profit of double the risk in the trade, Ghose said.

Trade Modifications:

The trade is protected with a limited risk of ₹750 per set. If Bank Nifty starts going below 51,500 levels, the bull call in the trade can be exited and the bear call of monthly expiry can be held to make the trade safe, Ghose added.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.