Bank Nifty Option Rocket Move Intraday Strategy explained by Trader Ghanshyam

Discussion in 'Traders Corner' started by Michael Gonsalves, Aug 20, 2022.

  1. Michael Gonsalves

    Michael Gonsalves Member Staff Member

    Jun 26, 2016
    Likes Received:
    Trader Ghanshyam has a deep understanding of how the Bank Nifty moves which has enabled him to earn crores in profit. According to one of his revelation, he earned Rs. 1.42 crore in May 2022 which works out to an annualized Rs 17 crore (see link)

    He has also been revealing his strategies freely. One of his popular strategies is known as the 'Bank Nifty 9.20 Trading Strategy'. It is quite simple to understand and implement and also yields good results.

    Now, Ghanshyam has explained a strategy known as the "Bank Nifty Option Rocket Move Intraday Strategy".

    Keep trading simple. Focus only on one indicator

    He has advised that we have to focus on one indicator. Most amateurs fail because they monitor multiple indicators which confuses them. He personally studies only the chart and nothing else. The chart is made by the price action and is the most leading indicator, he said.

    Option sellers congregate around round numbers. Target them

    It is well known that the round strikes in the Indices such as 39000, 39500, 40000 etc on the Bank Nifty have the most liquidity and are the favourite strikes of large institutional traders like FIIs, DIIs and HNIs.

    When the Index approaches the round numbers, the sellers of these strikes begin to get restless and start planning their exit strategy.

    We (i.e. the option buyers) have to wait for the sellers to panic. When that happens and they start covering their shorts, the Index gives a rapid move, Ghanshyam said. This causes the option prices to rise exponentially and benefits buyers.


    Take multiple trades with small quantities

    Ghanshyam advised that there are multiple occasions in a week when the setup arises. We have to watch the screen with a hawk-eye for the setup to arise and take positions.

    He suggested that we try out the strategy with small amounts so as to become familiar with the movements of the Index. If we take, say, 50 trades with small number of lots, we will understand the Bank Nifty and be able to predict its moves with more confidence.