Works Very well after 2.30 PM On Expiry Days for Both Banknifty & FinNifty (Thursday & Tuesday)
If You are a Option Buyer, This strategy is perfect for you.
Instrument Needed
FinNifty Spot
Or Banknifty Spot
Time Frame - 5 Min.
At First Try to Identify Trend.
Generally more than 60% of the time market makes good moves on Expiry days.
Or the market becomes trending in Expiry days.
Expiry Days are Slog over for option buyer because of time value. There is less time value on Expiry days. So it is easy to earn money for an option buyer on Expiry Days, provided the market becomes trending.
So, at first You have to found out the trend i.e. Uptrend or Downtrend
It has been seen that big players make a UTurn move (against the trend) at around 12.30-2PM on Trending Expiry Days, to kick out the retailer and to reduce the Option Premium value.
That's the point.
We will enter around 2-3 PM
But How?
CE or Call
If the market is moving Upwards,
Mark the support level or consolidating zone in 5 min Time Frame.
After a huge rally, the price will definitely come to its support zone again at around 1.30-2.30 PM.
Wait like a shikari. Find a Pin Bar Hammer Candle near support the zone
Select an ATM CE strike that is trading between 20-30.
After the Bullish Pin Bar Formed buy the ATM CE Option. Stop Loss will be low of the Bullish Pin Bar Candle.
The target will be a minimum of 100++
You Can trail by placing SL at the previous candle low.
PE or PUT
If the Market is moving downward,
Mark the resistance zone or consolidating Zone.
In 5 min TF.
After a huge down move market generally comes to its resistance zone again at around 1.30-2.30 PM.
Wait like a Shikari
Find a Bearish Pin Bar Candle Near the Resistance Zone.
Select an ATM PE strike, which is trading between 20-30. After the bearish pin bar formed, Buy the ATM PE option.
Stop Loss will be high of the bearish Pin Bar Candle.
The target will be a minimum 100++
You can trail also by placing SL at the previous candle low.