BTST Trade in Axis with Debit Spread
Debit Spread #
when one option is purchased & other option (both call & put) of same expiry, they can be distinguished only on the basis of strike
Bullish position # Trader buy lower exercise price & sells higher price,
Bearish Position # Trader buy higher price & Sells lower exercise price
BTST (Buying today & selling tomorrow) #
Buying before the closure of market & selling in next trading session (T+1)
Axis Bank #
Axis hold an important position in NIFTY, looking strong on daily chart, it can be considered BTST Trade.Please refer under given Price Chart & Volume Analysis
Debit Spread # Bought 1100 CE @ 39 & Sold 1160 CE @ 17
Two factors determine the total directional charateristics of the position
Delta of the spred
Size in which spread is executed
If implied voltality is low, the choice of spread focus on purchasing at-the-money option
If implied volatility is high, the choice of spread should focus on selling at the money option
