Weekly Option Spread Trade

Short Call & Put Ratio (Strangle Front spread) Bank Nifty Index Spread

19th to 24th August 2016

Longer Term Technical Analysis

• Bank Nifty has high low range on weekly bars and 5 bar ATR around 490-650 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

Option Spread Greek Management (Trade Management)

Short Term Technical Analysis (Trade Management)

Short Term Technical Analysis (Trade Management)

• Implemented a put front spread

• Legged into a call front spread

• Overall position was strangle front spread

Short Term Technical Analysis (Trade Management)

Option Spread Greek Management (Trade Management)

Short Term Technical Analysis (Trade Management)

Intuition

• No

Review

• I banked on the credit I received

• It was a good trade

• Only error I made was exiting the position i.e. timely exit was alright but clerical/order entry error was made by me

• I should improve my order execution efficiency

• Overall It was a great trade and I should make more of these when market is in a range

• Over to next expiry next week