First week Option trader should concentrate on Option Call sell to get maximum advantage of time value.
If one compares NIFTY Option table for the month of April, open interest considerably go down below 5500 PUT and above 6000 CALL.
So traders feel till April end NIFTY shall stay between the range of 5500 and 6000.
So one should sell 6100 CALL and 5300 PUT.
Strategy 1:
Sell 6100 April CALL @ 15-17
Sell 5300 April Put @ 13-15
Assuming even high brokerage rate, Rs.100 per lot, if one could exit at mere Rs. 10 profit in each lot One should able to gain Rs.300/- per lot of NIFTY. Your exit point should reach say by fist week of April.
So this could be reasonably assured Rs. 300/- per lot of NIFTY within one month. Each lot of NIFTY would require margin money about 12000, so this would be more than 30% return on investment.
I would recommend to employ 40% of your trading capital in to this NIFTY strategy.
If someone wants to be more safe can only sell 6100 CALL options, normally market would take more time to go up than go down.
Strategy 2:
Sell Reliance 880 March CALL @ 5-5.50
If Reliance reaches above 875 before March expiry then exit.
Strategy 3:
Sell LT 1600 CALL @ 5.50-6.00
If LT reaches 1580 before expiry before March expiry then exit.
One each of this strategy would make you wealthier by approximately Rs. 1000/- per trade on about 30000/35000 margin money. This is more than 30% return on investment. One should invest 20 to 25% trading capital in these two trades.
Lastly if there is still room to accommodate some more trades then for one week one should take following trades. These trades should be kept active either for one week ( and exit on Friday if they are making loss) or book profit the soonest there is 2% ROI.
Strategy 4:
Bear Spread strategy for PFC
Buy 190 PUT @ 7.3-7.5 and sell 180 PUT @ 3.30-3.50.
Maximum profit if PFC remains below 180 till March expiry will be approximately 12200 and maximum loss could be approximately 7800 if it closes above 190 at March expiry. However, one should exit the soonest there is 2% gain.
If PFC reaches around 184/185 during next week, this trade will be giving more than 2% profit.
Strategy 5:
Bull Spread strategy for Titan
Buy 280 CALL @ 8.7-9.0 and sell 300 CALL @ 3-3.25
Maximum profit if Titan closes above 300 till March expiry will be approximately 14300 and maximum loss could be approximately 5700 if it closes below 280 at March expiry. However, one should exit the soonest there is 2% gain.
If Titan reaches around 280/282 during next week, this trade will be giving more than 2% profit.
Strategy 6:
Bull Spread strategy for TechM
Buy 1120 CALL @ 32-35 and sell 1140 CALL @ 25-28
Maximum profit if TechMahindra closes above 1140 till March expiry will be approximately 3300 and maximum loss could be approximately 1700 if it closes below 1120 at March expiry. Since maximum loss could be about 1700, one could continue with this strategy till expiry. Or exit if one sees descent profit of Rs. 1500-2000 anytime before expiry.
If one compares NIFTY Option table for the month of April, open interest considerably go down below 5500 PUT and above 6000 CALL.
So traders feel till April end NIFTY shall stay between the range of 5500 and 6000.
So one should sell 6100 CALL and 5300 PUT.
Strategy 1:
Sell 6100 April CALL @ 15-17
Sell 5300 April Put @ 13-15
Assuming even high brokerage rate, Rs.100 per lot, if one could exit at mere Rs. 10 profit in each lot One should able to gain Rs.300/- per lot of NIFTY. Your exit point should reach say by fist week of April.
So this could be reasonably assured Rs. 300/- per lot of NIFTY within one month. Each lot of NIFTY would require margin money about 12000, so this would be more than 30% return on investment.
I would recommend to employ 40% of your trading capital in to this NIFTY strategy.
If someone wants to be more safe can only sell 6100 CALL options, normally market would take more time to go up than go down.
Strategy 2:
Sell Reliance 880 March CALL @ 5-5.50
If Reliance reaches above 875 before March expiry then exit.
Strategy 3:
Sell LT 1600 CALL @ 5.50-6.00
If LT reaches 1580 before expiry before March expiry then exit.
One each of this strategy would make you wealthier by approximately Rs. 1000/- per trade on about 30000/35000 margin money. This is more than 30% return on investment. One should invest 20 to 25% trading capital in these two trades.
Lastly if there is still room to accommodate some more trades then for one week one should take following trades. These trades should be kept active either for one week ( and exit on Friday if they are making loss) or book profit the soonest there is 2% ROI.
Strategy 4:
Bear Spread strategy for PFC
Buy 190 PUT @ 7.3-7.5 and sell 180 PUT @ 3.30-3.50.
Maximum profit if PFC remains below 180 till March expiry will be approximately 12200 and maximum loss could be approximately 7800 if it closes above 190 at March expiry. However, one should exit the soonest there is 2% gain.
If PFC reaches around 184/185 during next week, this trade will be giving more than 2% profit.
Strategy 5:
Bull Spread strategy for Titan
Buy 280 CALL @ 8.7-9.0 and sell 300 CALL @ 3-3.25
Maximum profit if Titan closes above 300 till March expiry will be approximately 14300 and maximum loss could be approximately 5700 if it closes below 280 at March expiry. However, one should exit the soonest there is 2% gain.
If Titan reaches around 280/282 during next week, this trade will be giving more than 2% profit.
Strategy 6:
Bull Spread strategy for TechM
Buy 1120 CALL @ 32-35 and sell 1140 CALL @ 25-28
Maximum profit if TechMahindra closes above 1140 till March expiry will be approximately 3300 and maximum loss could be approximately 1700 if it closes below 1120 at March expiry. Since maximum loss could be about 1700, one could continue with this strategy till expiry. Or exit if one sees descent profit of Rs. 1500-2000 anytime before expiry.
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