Bank Nifty Option Trading Strategy for weekly expiry

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Hello Guys, I hope you are doing well. In today’s post, I’m sharing a Bank Nifty Option Trading Strategy for weekly expiry.

It’s an advanced version of Iron Butterfly where risk is limited. So before we jump to our strategy, let me share what is iron butterfly first.

What is Iron Butterfly Options Strategy?

Basically, an iron butterfly is a non-directional limited risk-option strategy.

Iron Butterfly has 4 legs where we sell a straddle and to hedge that straddle option strategy, we buy an OTM call and put options. look at the below payoff chart.

So if you look at the payoff chart, you will find that we have limited risk on both sides. Now We modified a little and created a modified option strategy.

The reason for modification is the adjustments and the range. We get a little wider range in our modified iron butterfly and adjustments in Bank Nifty Option Trading Strategy for weekly expiry are easy compared to the typical iron butterfly.

So without wasting much time, let me share our modified Bank Nifty Option Trading Strategy for weekly expiry.

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Bank Nifty Option Trading Strategy for weekly expiry

Here is our Bank Nifty Option Trading Strategy for weekly expiry:

Bank Nifty Option Trading Strategy for weekly expiry

Now the breakevens for this advanced Bank Nifty Option Trading Strategy for weekly expiry are 42000 and 43000.

We did an open interest analysis in our live market session with the premium community members to find the range of this weekly strategy and this strategy required some adjustments if there is any breakout or breakdown from breakevens.

We will share the adjustments in our premium telegram channel.

If you join our premium telegram channel if you want to receive ready-made alerts about such strategies and adjustments on a real-time basis, can join through the below button:

If you want to learn how to create and adjust these option hedging strategies, you can join our Mentorship program.


DISCLAIMER: We are not a SEBI research analysts. Views and trading strategies are posted in this weekly market newsletter 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 aware of the risk inherent in securities trading.


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Sachin Sival is the founder and CEO of Replete Equities, an options trading company that specializes in delta hedging. A self-taught trader, Sachin has a passion for volatility trading and stock trading. Sachin loves to hone his skills by reading up on new strategies and techniques as well as taking part in industry events. In addition to being a successful entrepreneur, Sachin also takes pleasure in photography - as a hobby.

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