Nifty option trading on the day of F&O expiry can be very risky, here is a trading strategy to reduce risk and trade can be as accurate as 90%. Remember on the day of F&O expiry volatility as well as trading volume remains very high, now in case of volatile markets you just need to remember support resistance rules.
How to trade on Intraday chart:
When nifty future is trading at support zone as seen on intraday chart, you need to buy in the money nifty call option for a gain of at least 20% on the premium amount. Exit strategy will be executed when support level breaks or when target is met. Horizontal trend lines can help you easily locate support resistance on intraday charts, now just wait and watch the play of volatility. I have back tested this strategy, with doing 50 paper trades (virtual trading) on F&O expiry on last one year data; I found that my accuracy was about 90%. If traded with high leverage, trader can also multiply his trading capital in very short time. but do not forget that leverage is double edged sword, which has its advantages and disadvantages. Before taking trade read our trading risk disclaimer.
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