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Bank NIFTy Option SELLING - Nilesh

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26 views

Bank NIFTy Option SELLING - Nilesh

Uploaded by

wadatkar.amit104
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
You are on page 1/ 14

There are 3 segments in EQUITY market i.

e
1.equity cash
2.equity future
3.equity option
Today I am going to discuss about option selling in this book.
Option buying is known as CE
Option selling is known as PE

1.Now take a look at option buying


Here I am going to give example of bank nifty option buying. Only
Thursday is the on which you have to avoid option buying which is
PUT OR CALL. Because on this day there is price decay is going on
with respect to time.

For ex. if you buy the ITM call option of bank nifty at 12 pm which is
100 RS then it going to become 70 RS after 1 hr if market remain in
some price range.
So please avoid option buying on the expiry day only.
You have to sell option on expiry day.
For option selling you have to pay more premium
I have some screenshots of zerodha on which I will show you in very
easy language how the option selling works on expiry day.
Here you can see the banknifty chart. It close above the 19400. So all
other OTM call options are going to become zero as time passes. So
if you sell the OTM(out of money) call option which is greater than
19400 then they are going to become zero.
This is the only way to get safe profit on expiry day. But for that you
need a big capital.
Now lets see it with example
To sell 19600 CE option of bank nifty you need 33906 Rs in intraday
in zerodha.
It is different for different brokers.
As the price of OTM call option is going to become zero you are
going to get good profits.
Ex Bank nifty 1 lot is of 20
So 20*the price of option=money
The price is going to fall very faster if the option are out of money
(put and call)

This is only one example.


You can check of your demat account how much is your broker is
going to charge for option selling.

And for NRML order which is also known as delivery buying. The
amount required for option selling is much more .
You can see that in following pics. And you can also watch the time
3:16 pm in pic.
Here you can see that how the option price is becoming zero.
you can crosscheck the banknifty price on 16 april which is 19400.
So all the OTM call option becomes zero.
So just simply follow time decay rule and sell the call options on
expiry day and earn money. Please understand the risk in this and
work according to your plan.
There is very less risk in option selling on expiry
day so do it and earn money.
Here you can see that how the prices are becoming zero
All the best. Keep learning

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