Thursday, 27 September 2012

Expiry day today and strategy next

Strategies posted during last three/four days did not do very well and incurred small loss at the end. I also lost some money.
For tomorrow one may buy 5600 PUT at around Rs. 60. If someone is buying more than one lot then he/she  should keep half quantity as positional trade for October expiry.
If one wants to hedge then he/she can sell 5400 PUT @ around Rs. 20.

If one hedges then strategy will start earning profit if NIFTY goes below 5560. Maximum profit could be Rs.8000/lot if NIFTY goes below 5400 at expiry.
Maximum loss could be Rs. 2000/lot.
Risk reward ratio is good.


Disclaimer: This blog does not take any responsibility of your profit and loss. Kindly do your own research before you trade.

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