Expiry week Trading

Reliance 30 Mins Price Chart

The biggest event is history and all along with that all uncertainty are also gone now. Above price chart is 30 min candlestick of RIL. Based on our data reading we have arrived at conclusion stock may remain down to sideways until this week monthly expiry, 30th May. What trade would you take? We choose couple of strategies based on our reasoning. 

RIL PE Butterfly

This is 3 leg PE butterfly with head pinned at 1320 and wings around 1300 and 1340, in trading world we call it 20 points fly. 

RIL next day and Expiry Payoff

The above strategy needs margin of 23.8 lac

Max Profit of 88000 @ 1320 Expiry

Max Loss of -12000 |above 1340 or below 1300

For demonstration purpose we have shown strategy on  20 lots (it can be done 2 lots also)

Our whole point here is that even if you bet 20 lots max you lose is 12000, so risk reward is marvelous. Options are best instrument when it comes to managing risk. 

RIL PE Spread

Another strategy that we have here is for someone who is more aggressive and in that case we have designed 2 leg PE spread. 

RIL is trading around 1330, 3 Days to Expiry (DTE)

Two leg PE 1:3 PE back spread in RIL. Based on our data reading and underlying view we thought this can be good strategy if you are aggressive trader.

Next Day and Expiry Payoff
PE Spread PNL for Next day and Expiry.

The above trade is the way we would trade based on our data analysis and market view. This tool is very tiny VBA spreadsheet written by us to carryout small but important data points which we use to analyze and carryout trade.

If you are excited to learn this kind of data analysis and trade planning checkout our workshop section. Alpha Trader brings right from underlying view to trade adjustment. In two days you would learn how to use our tool and also get insight into how to trade on your own.

Expiry week Trading

One thought on “Expiry week Trading

Leave a Reply

Your email address will not be published. Required fields are marked *

Scroll to top