Bank Nifty Covered Call Options Trading Strategy – Part 5

Published on November 30, 2018

Bank Nifty Covered Call Options Trading Strategy – Part 5

This is the Part 5 of Options Trading Strategy video series. In this particular part, I have explained in detail about Covered Call writing strategy by taking BankNifty as an example. I have begun this part by explaining Bank Nifty as an Instrument and how to use combination of (Stocks & Options) and (Futures & Options) to generate consistent Income by writing Bank Nifty Calls and to bottom fish in market by being long in Bank Nifty futures and simultaneously by writing Bank Nifty Out of money Call.

I have highlighted that for Retail Trader & Investor, Bank Nifty is available as ETF (Bank Bees), as Bank Nifty Futures and as Bank Nifty Options (with Weekly & Monthly expiration). Most retail traders gravitate towards Bank Nifty futures and Bank Nifty Options but they need to rethink instrument selection based on what they want to achieve. As far as Investment along with Income generation is concerned, Retail traders would be much better off with Bank Nifty ETF as instrument along with Bank Nifty Options and as far as Trading is concerned with respect to bottom fishing, Retail traders should choose Bank Nifty Futures and Bank Nifty Monthly Options.

I have explained how one can use a simple Moving average strategy and pivot breakout technique to generate consistent income over long term investment. Also, I have used Bank Nifty Chart Options data to explain how a Hedge can be used while attempting to bottom fish in the market.

Next video in Options Trading Strategy series is that of Bull Call Spread. I intend to release it within two weeks. Similar to current strategy we discussed, I will be showing you a framework on how to execute Bull Call Spread as well.

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