HISTORICALLY BACKTESTED NIFTY ITM CALL OPTION BUYING STRATEGY

تم تحديثه
You get recession, you have stock market declines. If you don’t understand that’s going to happen, then you’re not ready, you won’t do well in the markets. – Peter Lynch
I recently read a book called "Profit From NIFTY Options -- Art Of Doing Nothing: A simple profitable way to trade NIFTY options with almost no effort" by Pramod kumar which blew my mind. The following strategy is from the book and the historically back tested result is on the chart itself.

STRATEGY-
ON THE LAST DAY OF EXPIRY, AT 3 20 PM BUY DEEP ITM CALL OPTION AT WHATEVER PREMIUM IT IS TRADING AT.
JUST KEEP HOLDING THE DEEP ITM CALL TILL END OF THE EXPIRY.
NO ATM, NO OTM, ONLY DEEP ITM AS THETA DECAY IS AGAINST OPTION BUYERS.
THAT'S IT, SIMPLE YET EFFECTIVE.

PROFIT AND LOSS IS IN NIFTY PTS AND NOT INR.
ملاحظة
The logic behind buying only ITM call is, Nifty has proven to be in an uptrend even after many crashes and corrections. Switching to a higher time-frame reduces noise and false signals, also transaction charges and brokerage reduces substantially as compared to trading on lower time- frames.
Beyond Technical AnalysisFundamental AnalysisTrend Analysis

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