Nifty option trading on the day of F&O expiry can be very risky, here is a trading strategy to reduce risk and trade can be as accurate as 90%. Remember on the day of F&O expiry volatility as well as trading volume remains very high, now in case of volatile markets you just need to remember support resistance rules. As support resistance are simple principles in technical analysis, but they have high influence on trading decisions on intraday charts.
How to trade on Intraday chart:
When nifty future is trading at support zone as seen on intraday chart, you need to buy in the money nifty call option for a gain of at least 20% on the premium amount. Exit strategy will be executed when support level breaks or when target is met. Horizontal trend lines can help you easily locate support resistance on intraday charts, now just wait and watch the play of volatility. I have back tested this strategy doing 50 paper trades (virtual trading) on F&O expiry on last one year data. I found that my accuracy was about 90%. But still past performance guarantees your nothing in stock markets. If traded with high leverage, trader can also multiply his trading capital in very short time. But do not forget that leverage is double edged sword, which has its advantages and disadvantages. You can also follow us on Facebook and Twitter for frequent updates. Before taking trade read our trading risk disclaimer.
MUKESH JHA says
I AM INTERESTED FOR NIFTY STRATEGY.
milind shinde says
nifty strategy for Oct
Tanu Tk says
Want tips on nifty option