Some of the option trades really did well this month, but still TCS, IFCI are going in opposite direction even after broad market has gone down.
Today after some gap FII did huge buying in cash, this is positive signal for the market. Trading volumes also were very good today after about a week. Everybody is expecting huge turmoil in market on budget day. So on this background below are some option strategies.
If one is prepared to risk of Rs. 3000 then
Buy BHARTIARTL 280 PUT @ 1.50-1.70 and Buy BHARATIARTL 320 CALL @ 1.40-1.70.
Maximum loss will be about 3000/3500 but has huge, unlimited profit potential. The stock is highly volatile, in down trend already, may show some bounce back due to oversold conditions though. On budget day there is possibility about some announcement in telecom sector and if it is negative then stock can again see levels of 265-255. This is very good risk to reward ratio, if someone is prepared to forgo Rs. 3000 in case unfortunately stock closes between 280-320 on the day of expiry.
If someone can risk about 8000/-
Then even better strategies
Buy HDIL 65 PUT @ 1.0-1.25 and BUY HDIL 70 CALL @ 1.0-1.25.
HDIL is near long time support, if it breaks on budget day then it would fetch handsome profit. Lower side it could go up to 52-54
Another good option is JPASSOCIATE
Buy 70 PUT @1.50-1.60 and Buy 75 CALL @ 1.0-1.25.
Again maximum loss could be around 8000/8500 however unlimited profit potential. In case market goes down on February 28, JP will struggle to maintain its present long time support of 64.
I just chose high beta stocks who suddenly showing lot of increase in implied vitality. I expect them to do wonders at budget day!
If someone wants to trade NIFTY,
BANKNIFTY looks attractive
BUY 12000 PUT between 90-110 and BUY 12100 CALL @ 90-120. Maximum loss around 5000/- unlimited profit potential!
But market is ultimate and generally does something which is unexpected. If all stalwarts are talking about big movement, market could stay subdued and surprise everybody, so take the risk which is manageable within your profits this month.
Let us be strategic and not gamble. In trading there is very thin line in this two words!
Last but not the least one low risk trade next couple of days. If you get DISHTV 65 PUT between 0.65-0.55 Buy it, maximum risk will be Rs. 2400, Target 2.1.
Disclaimer: This blog does not take any responsibility of your profit/loss
Today after some gap FII did huge buying in cash, this is positive signal for the market. Trading volumes also were very good today after about a week. Everybody is expecting huge turmoil in market on budget day. So on this background below are some option strategies.
If one is prepared to risk of Rs. 3000 then
Buy BHARTIARTL 280 PUT @ 1.50-1.70 and Buy BHARATIARTL 320 CALL @ 1.40-1.70.
Maximum loss will be about 3000/3500 but has huge, unlimited profit potential. The stock is highly volatile, in down trend already, may show some bounce back due to oversold conditions though. On budget day there is possibility about some announcement in telecom sector and if it is negative then stock can again see levels of 265-255. This is very good risk to reward ratio, if someone is prepared to forgo Rs. 3000 in case unfortunately stock closes between 280-320 on the day of expiry.
If someone can risk about 8000/-
Then even better strategies
Buy HDIL 65 PUT @ 1.0-1.25 and BUY HDIL 70 CALL @ 1.0-1.25.
HDIL is near long time support, if it breaks on budget day then it would fetch handsome profit. Lower side it could go up to 52-54
Another good option is JPASSOCIATE
Buy 70 PUT @1.50-1.60 and Buy 75 CALL @ 1.0-1.25.
Again maximum loss could be around 8000/8500 however unlimited profit potential. In case market goes down on February 28, JP will struggle to maintain its present long time support of 64.
I just chose high beta stocks who suddenly showing lot of increase in implied vitality. I expect them to do wonders at budget day!
If someone wants to trade NIFTY,
BANKNIFTY looks attractive
BUY 12000 PUT between 90-110 and BUY 12100 CALL @ 90-120. Maximum loss around 5000/- unlimited profit potential!
But market is ultimate and generally does something which is unexpected. If all stalwarts are talking about big movement, market could stay subdued and surprise everybody, so take the risk which is manageable within your profits this month.
Let us be strategic and not gamble. In trading there is very thin line in this two words!
Last but not the least one low risk trade next couple of days. If you get DISHTV 65 PUT between 0.65-0.55 Buy it, maximum risk will be Rs. 2400, Target 2.1.
Disclaimer: This blog does not take any responsibility of your profit/loss
Hi,
ReplyDeleteI've been following your posts for the past week. Nice work. How do you track FII buying, volatility etc? Do you execute these trades yourself as well?