This link provides a near-live output to choose the right strike price for a naked one-leg (single leg) options writing.
How to interpret these inputs/ output – (Refer to the black boxes with number)
- Timestamp when you hit calculate or when you load the page
- BankNifty spot value at the above mentioned timestamp
- Filters for your strategy – Gap left (for PEs) refers to the minimum points you require for breakeven, beyond which you will start incurring losses. The lesser it is, the more risker it is and vice versa.
- Similarly Gap right (for CEs) refers to the minimum points you require for breakeven, beyond which you will start incurring losses. The lesser it is, the more risker it is and vice versa.
- Filters for your strategy – PE returns refers to the minimum returns you expect on the invested capital (assuming Rs. 50,000 margin per lot – Zerodha)
- Filters for your strategy – CE return refers to the minimum returns you expect on the invested capital (assuming Rs. 50,000 margin per lot – Zerodha)
- Dropdown box to choose the expiry date
- Calculate button to list down a table with the following output
- Output table –
- ce_ltp – LTP of CE
- ceper – % return if you write the CE and hold it till expiry
- strikedelta – Difference between current SPOT and the strike price (higher the difference, safer it is)
- pe_ltp – LTP of PE
- peper – % return if you write the PE and hold it till expiry
You may choose to write one or more legs depending on your risk apetite.
We will be adding more features soon – Immediate next week’s contracts and month-end contracts. Please do provide your comments/ feedback/ suggestions.
Please note – This tool/ output is only for educational purpose. Option writing may involve unlimited risk. Do hedge by buying equal lots of PE and CEs as required. Certain brokers may not allow buying far-OTM options due to OI restrictions. Use it at your own risk!
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5 thoughts on “BankNifty Naked One leg option writing”
Very helpful… Thanks a lot!!!
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