Nifty/Banknifty options trading strategy for tomorrow(budgetday)

For budget day, market volatility tends to increase, so it's essential to trade cautiously. Here’s a brief strategy for Nifty and Bank Nifty options:

Straddle/Strangle:

Straddle: Buy both an ATM (At The Money) call and put option on Nifty or Bank Nifty. This strategy profits from big moves in either direction, especially when there’s high volatility expected during the budget announcement.
Strangle: Buy an OTM (Out of The Money) call and put option, which can be cheaper than a straddle. This also takes advantage of big moves but requires larger price movements to be profitable.
Iron Condor:

If you expect low volatility, you can use an iron condor by selling a near-the-money call and put option and buying a further OTM call and put. This profits when the market stays within a range.
Covered Call/Put (for conservative traders):

If you already hold Nifty or Bank Nifty futures, you can sell call options for additional premium, expecting that the price will not break certain levels.
Keep a Close Eye on the Market Reaction:

Be prepared to exit early if market conditions shift unexpectedly.
Consider setting a stop-loss or target to avoid excessive losses.
Remember to adjust the strategy based on how you expect the market to react post-budget announcement, and never risk more than you're willing to lose in volatile conditions.