Option Strategy- Simple trick to make 1000 to 2000 daily (Either in movement or range bound).

Option Strategy- Simple trick to make 1000 to 2000 daily (Either in movement or range bound).

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Simple Option Strategies to Make ₹1000 – ₹2000 Daily

Options trading can be highly profitable if you follow structured strategies. Whether the market is trending (moving up/down) or range-bound (sideways), there are simple but effective strategies to make consistent profits.

1. For a Trending Market (Movement in Any Direction)

If the market is moving up or down, you can use:

A. ATM Option Buying (Directional Trade)

• Strategy: Buy At-the-Money (ATM) Call Option for a bullish move or ATM Put Option for a bearish move.
• When to Use:
  • If Nifty/Bank Nifty breaks important support/resistance levels.
  • Strong volume and momentum in any direction.
  • News-based movement or market opening with a gap.
• Risk & Reward:
  • Risk: Fixed to premium paid.
  • Reward: Unlimited potential.
• Target: ₹1000-₹2000 profit can be booked with a 15-20 points move in Bank Nifty or 10-15 points in Nifty.
• Stop Loss: 40% of premium or fixed loss of ₹500-₹700 per trade.

Example

• If Bank Nifty is breaking resistance at 45,000, buy ATM Call Option (45000 CE).
• If Bank Nifty is breaking support at 44,800, buy ATM Put Option (44800 PE).

B. Scalping with Delta Hedging

• Strategy: Buy ATM Call & ATM Put together and exit one as per market movement.
• When to Use:
  • Market is showing quick movement but unclear direction.
  • Volatility is expected to increase (news events, expiry day).
• Risk & Reward:
  • Risk: Limited to premium paid for both options.
  • Reward: High if market moves sharply in any direction.

Example

• Buy Nifty 22,000 CE at ₹120 & Nifty 22,000 PE at ₹110 (Total cost: ₹230).
• If Nifty goes up fast, sell CE at ₹180 and hold PE for exit later.
• If Nifty goes down fast, sell PE and exit CE.
• Target: ₹1000 profit in one leg, total cost recovery in the other.

2. For a Range-Bound Market (Sideways Movement)

If the market is not trending, you can use:

A. Iron Condor (Safe Strategy for Small Profits)

• Strategy: Sell OTM Call & OTM Put and buy further OTM Call & Put for protection.
• When to Use:
  • Market is expected to stay within a range (e.g., Nifty moving between 21,800 – 22,200).
  • Low volatility, no major news expected.
• Risk & Reward:
  • Risk: Limited due to hedge.
  • Reward: Small but consistent profits.

Example

• Nifty at 22,000, expected to stay between 21,900 – 22,100.
• Sell 21,900 PE & 22,100 CE.
• Buy 21,850 PE & 22,150 CE (for protection).
• Net premium collected: ₹1500-₹2000 per lot.

B. Strangle Selling (Premium Decay Strategy for Sideways Market)

• Strategy: Sell Out-of-the-Money (OTM) Call & Put Options and hold till decay.
• When to Use:
  • Market is not making big moves (low volatility).
  • Expiry week (Thursday is best for theta decay).
• Risk & Reward:
  • Risk: High if market suddenly moves (use Stop Loss).
  • Reward: ₹1000-₹2000 per day due to time decay (theta decay).

Example

• Nifty at 22,000, expected to stay between 21,850 – 22,150.
• Sell 21,800 PE & 22,200 CE.
• Collect ₹40-₹50 premium, which will decay to ₹5-₹10 by the end of the day.
• Profit: ₹1500-₹2000 per lot.

Risk Management & Tips for Consistent Profits

1. Trade with Small Capital First – Start with 1 lot and increase size after confidence.
2. Fix a Daily Profit & Loss Limit – Target ₹2000 profit or exit if loss reaches ₹1000.
3. Avoid Overtrading – 2-3 trades per day are enough.
4. Use Stop Loss – Never let a loss exceed ₹700-₹1000 per trade.
5. Trade in Liquid Indices (Nifty, Bank Nifty) – These have less manipulation and better liquidity.

Final Verdict: Which Strategy to Use?

• If the market is trending → ATM Option Buying or Delta Hedging.
• If the market is range-bound → Iron Condor or Strangle Selling.

Would you like a live example based on current market conditions?