Strategy description

Bank Nifty Option Buying Strategy (Directional: Bullish & Bearish)

Strategy Type

1. Directional Option Buying: Both bullish and bearish trades are based on market bias or trend analysis.

Position Sizing

1. Buy 2 lots per multiplier (scalable based on capital and risk appetite).

Entry Criteria

Take bullish or bearish positions based on the market outlook or signal. Define Entry Level based on the index value at position initiation.

Profit Booking Targets

1. Target 1 - 50% Booking: Book half of the position when Bank Nifty moves ±200 points from the entry level in the direction of the trade.
2. Target 2 - 100% Booking: Exit remaining 50% when Bank Nifty moves ±400 points from the entry level in the same direction.

Stop Loss (SL)

1. If no profit target is reached, book full loss when Bank Nifty moves ±100 points from the entry level in the opposite direction of the trade.

Trailing Stop Loss (TSL)

1. Once Target 1 is achieved, adjust SL for the remaining position to the entry index level (breakeven), securing partial profit and reducing risk.