Weekly Spread Expiry

1. Weekly Option Spread Trade
Short Call Ratio (Front spreads) Bank
Nifty Index Spread
2nd to 3rd August 2016

2. Longer Term Technical Analysis

3. • Bank Nifty has high low range on weekly bars
and 5 bar ATR around 550-590 range
• We can use 600 range as a guide to implement
weekly expiry option spread trade

4. Intermediate Term Technical Analysis

5. • 1 quarter regression VS 1 quarter price
average indicates Bank Nifty to be trading in a
Uptrend

6. Short Term Technical Analysis

7. Trade Management
• I sold the spread at credit of INR 680/spread
• I bought the spread next day around 2:41pm
to square off the position discretionarily due
to a event trigger which forced me to be
cautious

8. Intuition
• No

9. Review
• I exited due to a trigger of event based news
for the next day and if GST passed I could
potentially would have been in the position of
unlimited losses if prices would have traded
above 19000
• I exited at 2:41pm and spread collapsed and
expired worthless
• Over to next weekly expiry