TCS
Sell TCS 1500 January expiry CALL @ 5.25 and Sell TCS 1150 January exp CALL @ 5.20-5.25. This will become zero at the expiry and shall able to fetch 2600/- by January expiry excluding brokerage.
There is only 7.3% probability that TCS shall reach to 1500 and 9% that it could reach 1150 by this expiry. This probability is too low. Delta (0.06) and Theta (0.4) values are also suggesting it is very safe to execute this trade.
TATAMOTORS
Sell Tatamotors 360 CALL of January 2013 expiry @ 1.25.
One should able to keep this premium if option expire worthless by expiry. Profit 1250 excluding brokerage.
Monte Carlo probability is just 12% of Tatamotors reaching 360 before January expiry.
Those who would like to take little more risk can sell February 360 CALL Option at Rs. 5/-, where probability of reaching 360 is 25%. But delta and theta are very attractive. Profit 5000/- excluding brokerage. This means there is 75% probability that one should able to gain 5000 by end of February.
NIFTY
Sell NIFTY 6300 February CALL @ 20/21.
Profit will be around Rs. 1000/lot by end of February.
Depending upon present implied volatility there is just 17% probability that NIFTY will cross 6300 by end of February and this means there is 83% chances that one should able to retain the premium.
Risk averse can Sell NIFTY 6400 CALL @ 10/11 considering the budget month and could gain Rs.500/-per lot where chances of success are 88%.
In short, according to very rough calculation if one would have about Rs 100,000/- as margin money then by end of the month he/she could gain about Rs. 4000/- excluding brokerage.. This is 40% gain with probability factor more than 80%.
Disclaimer: This blog does not take any responsibility of your profit/loss.
Sell TCS 1500 January expiry CALL @ 5.25 and Sell TCS 1150 January exp CALL @ 5.20-5.25. This will become zero at the expiry and shall able to fetch 2600/- by January expiry excluding brokerage.
There is only 7.3% probability that TCS shall reach to 1500 and 9% that it could reach 1150 by this expiry. This probability is too low. Delta (0.06) and Theta (0.4) values are also suggesting it is very safe to execute this trade.
TATAMOTORS
Sell Tatamotors 360 CALL of January 2013 expiry @ 1.25.
One should able to keep this premium if option expire worthless by expiry. Profit 1250 excluding brokerage.
Monte Carlo probability is just 12% of Tatamotors reaching 360 before January expiry.
Those who would like to take little more risk can sell February 360 CALL Option at Rs. 5/-, where probability of reaching 360 is 25%. But delta and theta are very attractive. Profit 5000/- excluding brokerage. This means there is 75% probability that one should able to gain 5000 by end of February.
NIFTY
Sell NIFTY 6300 February CALL @ 20/21.
Profit will be around Rs. 1000/lot by end of February.
Depending upon present implied volatility there is just 17% probability that NIFTY will cross 6300 by end of February and this means there is 83% chances that one should able to retain the premium.
Risk averse can Sell NIFTY 6400 CALL @ 10/11 considering the budget month and could gain Rs.500/-per lot where chances of success are 88%.
In short, according to very rough calculation if one would have about Rs 100,000/- as margin money then by end of the month he/she could gain about Rs. 4000/- excluding brokerage.. This is 40% gain with probability factor more than 80%.
Disclaimer: This blog does not take any responsibility of your profit/loss.
