325 Premium Strategy is basically a Hedging Strategy. First, let me explain to you about Hedging.
Hedging is a risk management strategy implemented by traders to mitigate potential losses by offsetting or reducing their exposure to adverse price movements in financial markets. By implementing hedging strategies, individuals and organizations aim to protect themselves against potential losses while still allowing for potential gains.
It’s important to note that hedging does not guarantee complete protection against losses. It is a risk management tool that aims to reduce risk exposure but cannot eliminate it entirely. The effectiveness of hedging strategies depends on the accuracy of risk assessments and the dynamics of the underlying market.
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325 Premium Strategy Key Points
You can use the 325 Premium Strategy to make a position in Nifty.
Entry Time: 3:25 PM, Friday
Premium Range: 150 – 190
Options: CE & PE
SL: 80 (When the Premium price reaches 80 then exit and hold the other side)
Target: 320+
Strike Price: Current Weekly Expiry
325 Premium Strategy Pro Tips
1. If SL hit in CE side and did not give the profit yet then buy 1 lot of ITM(In The Money) PE and exit both sides at 300 premium for safe play.
2. If SL hit in PE Side and did not give the profit yet then buy 1 lot of ITM(In The Money) CE and exit both sides at 300 Premium for safe play.
FAQ
Difference Between the Normal and Premium 325 Strategy?
In the normal strategy, the premium price is relatively lower compared to the premium strategy. In a normal strategy, the profit and loss potential is lower compared to the premium strategy. In the premium strategy, both the profit and loss potential are higher.
Can we hold the position Overnight by putting SL?
No, you can not hold any position overnight by putting SL. In next day morning, you have to put SL again.
If the Market goes Sides ways then what to do?
If the market goes sideways then both sides of SL will hit and huge losses we will get. But this is hardly possible that the market will remain sideways for a whole week.