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Expiry Day Trading: Risk Management Blueprint

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Expiry Day Trading: Risk Management Blueprint

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nanipentesh2
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© © All Rights Reserved
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EXPIRY DAY TRADING

R is k Mana gem en t B l u ep r in t
(For traders with small, medium and large capital)

Presented by:

Arun Bau
| Chartered Accountant | CFA Level 3 Candidate
| Trader | 5 Years Exp. | Mentored 5K Traders
CONTENTS
Current Expiries a Week

Types of Expiries

Risk Management Blue Print - Scenario 1 ( < 3 Lakhs Capital)

Risk Management Blue Print - Scenario 2 ( 4 to 10 Lakhs Capital)

Risk Management Blue Print - Scenario 3 ( > 10 Lakhs Capital)

Strategies which triggered recently


CURRENT EXPIRIES OF DIFFERENT INDICES

Midcap & Bankex - Monday (Liquidity is less, better to avoid)


Fin. Nifty - Tuesday
Bank Nifty - Wednesday
Nifty - Thursday
Sensex - Friday (Liquidity is less, better to avoid)
TYPES OF EXPIRIES

Sideways / Range Bound


It is the most likely expiry setup (50% of the times) and is suitable for Butterfly
Strategy

Reversal / Volatile Expiries


2nd most likely expiry setup (20 to 30%) and is suitable for Butterfly & Condors

Trending Expiries
Happens rarely and is suitable for Zero Hero setups or even for Condors sometimes.
RISK MANAGEMENT BLUEPRINT (SCENARIO 1)
(Suitable for those traders who manage less capital of say 3 lakhs or less)

Max risk 4%* a week (only for expiry strategies)


Risk must not exceed 2% per expiry
Do not trade in more than 3 expires a week

* Percentages are to be calculated on total capital (not on the deployed capital)


*Also note that these percentage risk are maximum limits, not the minimum
SCENARIO 1 | 2% RISK PER EXPIRY | 4% RISK PER WEEK

Tuesday-Fin Nifty
(1:1 trade) (1:2 trade) (1:3 or more trade)

-2% Break 2% 4% >= 6%


Loss Even Profit Profit Profit

Wednesday-Bank Nifty

-2% >=2%
Profit Do not
Loss take any
further
expiry
SKIP Break trades for SKIP
Break the week
Even
Even

>=2%
Profit -2%
Loss

Thursday-Nifty

Try with
2% only
RISK MANAGEMENT BLUEPRINT (SCENARIO 2)
(Suitable for those traders who manage capital of say 4 to 10 lakhs and are
doing both Intraday + weekly or monthly option selling as well)

Max risk 2%* a week (only for expiry strategies)


Risk must not exceed 1% per expiry
Do not trade in more than 3 expires a week

* Percentages are to be calculated on total capital (not on the deployed capital)


*Also note that these percentage risk are maximum limits, not the minimum
SCENARIO 2 | 1% RISK PER EXPIRY | 2% RISK PER WEEK

Tuesday-Fin Nifty
(1:1 trade) (1:2 trade) (1:3 or more trade)

-1% Break 1% 2% >= 3%


Loss Even Profit Profit Profit

Wednesday-Bank Nifty

-1% >=1%
Profit Do not
Loss take any
further
expiry
SKIP Break trades for SKIP
Break the week
Even
Even

>=1%
Profit -1%
Loss

Thursday-Nifty

Try with
1% only
RISK MANAGEMENT BLUEPRINT (SCENARIO 3)
(Suitable for those traders who manage big capital of more than 10 lakhs
and are doing both Intraday + weekly or monthly option selling as well)

Max risk 1%* a week (only for expiry strategies)


Risk must not exceed 0.5% per expiry
Do not trade in more than 3 expires a week

* Percentages are to be calculated on total capital (not on the deployed capital)


*Also note that these percentage risk are maximum limits, not the minimum
SCENARIO 3 | 0.5% RISK PER EXPIRY | 1% RISK PER WEEK

Tuesday-Fin Nifty
(1:1 trade) (1:2 trade) (1:3 or more trade)

-0.5% Break 0.5% 1% >= 1.5%


Loss Even Profit Profit Profit

Wednesday-Bank Nifty

-0.5% >=0.5%
Profit Do not
Loss take any
further
expiry
SKIP Break trades for SKIP
Break the week
Even
Even

>=0.5%
Profit -0.5%
Loss

Thursday-Nifty

Try with
0.5% only
TRADES TRIGGERED RECENTLY BASED ON OUR
STRATAGIES
We follow 5 Strategies in total:
1. Butterfly
2. Double Condors
3. Zero - Hero Strategy A
4. Zero - Hero Stratagy B
5. Zero - Hero Stratagy C
Double Condor in Nifty
Butterfly in Midcap Expiry - March 4
Butterfly in Fin. Nifty - 6 Feb
LEARN ALL THESE
STRATEGIES IN ONE GO
1000+ Traders Benefited MASTER ART OF
EXPIRY-DAY TRADING
WITH BUTTERFLY, ZERO-HERO & CONDOR STRATEGIES

SUITABLE FOR 2024


BANK NIFTY
UPDATED
NIFTY
FIN NIFTY
CONTENT

CLICK HERE TO GET INSTANT


ACCESS TO THE MASTERCLASS

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