Q1. What is your approach to Bank Nifty Options Trading?
Answer: We have been trading Bank Nifty Options actively for the last four years and it has been getting better and better. So we wanted to share our Bank Nifty Options experience through this service to traders who want to benefit from that. As part of this service, we will only be buying options. We will not be selling Options in this service and therefore, it can be used by traders who have relatively less capital because Option selling requires larger capital.
Q2. Are you trading both Bank Nifty Futures and Bank Nifty Options?
Answer: Yes, we are trading both Bank Nifty Futures and Options. Bank Nifty has a higher beta compared to Nifty. So Bank Nifty tends to move about 30% more up and down than Nifty so it also gives you wider swings than Nifty because it’s just one particular industry, which is the banking industry. So the gains and losses on the index are amplified and the options, therefore, tend to move that much more and the options sellers also understand that. And therefore the pricing of Bank Nifty Options is always a bit more expensive than Nifty options. And as you know, the margin requirements have been increased significantly in March 2020 by SEBI/Govt, which has increased trading capital requirements by nearly 3x since March 2020. The margin capital requirements have been increasing gradually since Jan 2018, and they very high in India compared to other markets.
Q3. How much gains can I make with your service? Do you offer any performance guarantee?
Answer: We have got profitable trades every month and every quarter, with both Bank Nifty Options and Futures. Our Bank Nifty Trading system has improved significantly in last 2 years. If you don’t make a profit, we will extend the service for you by 1-3 months more to help you make profit. However, we don’t offer any performance guarantee.