The document discusses a weekly option spread trade on the Bank Nifty Index from August 2nd to 3rd, 2016. It analyzes the index technically on longer, intermediate, and short term timeframes. It then discusses the specific trade, where the author sold a call spread at a credit of INR 680 but bought it back the next day around 2:41pm due to an event trigger that increased risk. The author exited the position to avoid potential unlimited losses if prices rose above 19000 due to the triggering news event.

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