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VISMINDIA – Institute of Financial Market provide classes for educational purpose with a view to create skilled professionals in Stock Market, Currency Market and Commodity segment.

Our students are well placed in broking houses, Research houses, as Dealers, Portfolio Managers, Wealth Advisors, Advisors, Technical and Research Analyst, Relationship Manager and are promoted earlier than their colleagues in Middle management Levels as ASMs, BDMs, RSMs.

Nifty and Bank Nifty Expiry Strategy

Nifty, Bank Nifty, MidCP-Nifty, FinNifty in NSE and Sensex and BankEx in BSE are the most popular and liquid indices in the Indian stock market. They represent the performance of the top 50 (Nifty) and top 12 (Banknifty) and top 30 (Sensex) companies in the different sector, respectively. Indices have futures and options (F&O) contracts that allow traders to speculate on their price movements.

Now a Days, trading on Nifty and Bank Nifty and other Indexes expiry can be challenging and risky due to high volatility.

VISMINDIA will talk about some best trading strategies to incorporate to overcome challenges associated with them.

Why do people love to trader in Nifty, Banknifty, MidCP-Nifty, Sensex and Bankex Option at Expiry?
  • High Liquidity– Bank Nifty – NSE and BankEx – BSE are the highest transacted indices in the NSE and BSE for options. Hence, it has very high liquidity
  • Volatility– Bank nifty and BankEx – BSE have displayed higher levels of volatility than NIFTY, therefore providing more trading opportunities
  • Hero & Zero – Now a days, its has been notice that some traders believe Hero and Zero option strategies.
Understand Expiry Option Rules 

 

. During this period, you need to be aware of several key factors:

 

  • Time decay:   The option's theta is a measurement of the option's time decay. The theta measures the rate at which options lose their value, specifically the time value, as the expiration date draws nearer. Generally expressed as a negative number, the theta of an option reflects the amount by which the option's value will decrease every day
  • Roll-over activity:    Rollover or rolling over a contract means carrying forward the futures position by switching from the current-month contract closer to expiration to another-month contract with expiry in another month
  • Max pain theory:  The price of the underlying index/stock moves toward a point that results in maximum loss (pain) to the highest number of options buyers. Alternatively, it also means a minimum loss to option sellers. 
  • Option Chain. An options chain is a table displaying options quotes for a particular underlying security The options chain matrix is updated in real-time showing the last price, trading volume, and best bid and offer for the calls and puts of an options series, typically segmented by expiration date. An option's strike price is also listed, which is the stock price at which the investor buys the stock if the option is exercised.
We will Cover the following topics in Nifty and Bank Nifty Expiry Trading Strategies:

Trading Psychology

  • Time Analysis
  • Basic Rules for Expiry Trading
  • Determine Entry and Target Price
  • How to use Stop Loss and Lower Impact and Trail Stop Loss to Maximise profit
  • How to Control Emotion in high volatility Market

Trading Indicators

  • For Upside Movement
  • For Downside Movement
  • Momentum Trading
  • Trend Reversal Opportunity
  • Price Action

Derivative Strategies

  • How to Use Option Chain
  • How to Select Strike Price
  • Limited Loss Derivative Strategies
  • Range-Bond Derivative Strategies
  • Greek – Theta, Delta, Vega

All Courses

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Stock Market Basics

5 Rating

If you want to enter in any field, first thing is that you must know the basic part of it.

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Advance Technical Analysis

5 Rating

Technical Analysis is based on the assumptions that all

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Advance Derivative Analysis

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VISMINIDA, trained our students how to control emotion in stock market

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Intraday Trading

5 Rating

Fundamental Approach analysis share prices on the basis of economic, industry

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Nifty & Bank Nifty Expiry Strategies

5 Rating

Nifty, Bank Nifty, MidCP-Nifty, FinNifty in NSE and Sensex and BankEx in BSE are the most popular

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Fundamental Analysis

5 Rating

Fundamental Approach analysis share prices on the basis of economic