The document discusses a weekly option spread trade using a strangle front spread on the Bank Nifty Index from August 19th to 24th, 2016. It analyzes the long-term, intermediate-term, and short-term technicals which indicate an uptrend. The trader implemented a put front spread and later a call front spread to take advantage of the range-bound market. While the trade was profitable, the trader notes the need to improve order execution efficiency when exiting positions.

1. Weekly Option Spread Trade
Short Call & Put Ratio (Strangle Front
spread) Bank Nifty Index Spread
19th to 24th August 2016

2. Longer Term Technical Analysis

3. • Bank Nifty has high low range on weekly bars
and 5 bar ATR around 490-650 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. Option Spread Greek Management
(Trade Management)

7. Short Term Technical Analysis (Trade
Management)

8. Short Term Technical Analysis (Trade
Management)
• Implemented a put front spread
• Legged into a call front spread
• Overall position was strangle front spread

9. Short Term Technical Analysis (Trade
Management)

10. Option Spread Greek Management
(Trade Management)

11. Short Term Technical Analysis (Trade
Management)

12. Intuition
• No

13. Review
• I banked on the credit I received
• It was a good trade
• Only error I made was exiting the position i.e.
timely exit was alright but clerical/order entry
error was made by me
• I should improve my order execution efficiency
• Overall It was a great trade and I should make
more of these when market is in a range
• Over to next expiry next week