How to regular income through BankNifty Weekly Expiry Strategy?

How to generate regular income through BankNifty Weekly Expiry Strategy?

BankNifty Weekly Expiry can be used to generate regular weekly income with a simple strategy. Let’s see it in detail.

Note: This strategy should be used only on Expiry day (every Thursday).

Step 1: Spot Price at 1.00 PM

On Expiry day, Check BankNifty Spot price at 1.00 PM and note it down. Let’s say BankNifty Spot is trading at 32180.

Step 2: Select Strikes to Trade

Select the strike price just above and below the BankNifty sport price. Strike above the current price should be our CE and the one below should be our PE.

Since BankNifty is trading at 32180, we will select 32200 CE and 32100 PE.

Step 3: Entry Trigger

Place aorder to Buy both at 32200 CE & 32100 PE at 25 Rupees each. Your total investment will be 50 Points, which is 50*20=1000 Rupees.

Step 4: Target & SL

Your Target for this trade is 75 Points. If either CE/PE (or) combined premium hits 75 points, you can exit the trade. Your profits will be 25 points, which is 500 rupees.

Your SL for this trade is 25 Points. If the combined premium hits 25 points, you can exit the trade. Your max loss will be 25 points, which is 500 rupees.

If SL Hits, reverse the trade (Sell 32200 CE & 32100 PE, and collect 20-25 premium), you will earn 25 Points easily. SL for reverse trade is 50 Points

Note: You need to wait till 3.00 PM for either SL/Target. If neither target nor SL is hit by 3.00 PM, you can exit the trade.

Please feel free to ask if you have any queries.

To learn in detail, watch our video: