Nifty Options Strategy for Election Result Week

Unsure how to trade Nifty options during the election week? Our strategy helps you capitalize on potential market movements. Learn more!

Nifty Options Strategy for Election Result Week

Hello guys,

I hope you all are doing well. We are very close to our election result, and many were asking for a result-based strategy. Here I’m sharing one of the safest strategies for this event.

Keep one thing in mind, that election result week is a highly volatile event and there is always a certain risk in every trade, no strategy can give you 100% profit only. We just need to focus on how much risk we are taking with any trade.

If you know how to adjust your strategy, you can reduce that risk too. So I’m sharing Nifty Option Strategy for Election Result week with some possible adjustments.

Nifty Options Strategy for Election Result Week: Calendar Spread

*Above strategy created on May 31, when max pain was at 22500. You need to check the max pain again while creating this strategy.

Reason to create this strategy:

Now as we all know in June 04 election results will come. Due to this, we’ll get huge volatility in this market.

So our first priority should be to keep our Vega neutral.

Now after the result has come, we will see a sharp decline in the volatility that will be helpful for a credit spread.

On the other hand, due to high volatility, risk is also high. So we have created this Nifty Options Strategy for Election Result Week (Calendar spread) to limit our risk.

Adjustments for Nifty Options Strategy for Election Result Week

Before deploying this strategy, Let me clear a few things:

  • If you are going to deploy this strategy, You have to be a little more active.
  • A basic understanding of this strategy is also required.

If you got a breakout on the Upside from our break-even level (23600) shift your sold call 400 Points up. This means square off 22500 CE and sell 22900 CE.

Same thing you can do with PUT if we get a breakdown from 21700. Shift your sold PUT to 400 points lower strike.

Event Trading is only for aggressive traders, Safe traders can sit and enjoy the every move of the market.

Post your comments in the comment box if you have a query related to option strategy. You can ask any question related to options trading in the comment box.

I have created an Option Strategies: A Mentorship Program, where I have shared everything that is required to trade options more effectively.

From pricing to Greeks, intrinsic value to time value, implied volatility to open interest, rule-based strategies to trend following setup, strategies to their adjustment, whatever we need in our daily implementation, I have covered in this course.

So you should check it if you have passion, dedication and commitment to succeed in options trading.

DISCLAIMER: – we are not a SEBI research analyst. Views posted here only for educational purposes. There is no liability whatsoever for any loss arising from the use of this product or its contents. This product is not a recommendation to buy or sell, but rather a guideline to interpreting specified analysis methods.  This information should only be used by investors and traders who are aware of the risk inherent in securities trading.

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