JUBLFOOD

FII sold in huge quantity on Friday, if this trend continues till expiry ie May 30, 2013, there could be small correction in market.

Buy JUBLFOOD 1050 PUT between 7 to 7.50 and hold till expiry. Maximum loss cold be Rs. 1750 to 1875/-. If market really corrects, these kind of stocks, investors would like to exit first. There was sharp up move earlier and it will take downward moment with much greater speed than the prior up move. One can easily get target of 45/50 within a short span ie till May 30, 2013.

You will appreciate, nobody can predict the market only could anticipate direction and could calculate risk-reward ratio. Risk reward ratio is very good here.

Disclaimer: This blog does not take any responsibility of your profit/loss

Axisbank

Buy Axisbank 1450 PUT between 25.10-25.50
Maximum investment Rs. 6400.
Adjust profit with trailing stoploss.


Bearspread strategy: Very good risk and reward ratio.
Buy Axisbank 1450 PUT between 25.10-25.50 and sell 1440 PUT at 22-23
Maximum loss Rs. 500-700 and Maximum profit Rs. 3000-4000 if Axis Bank closes below 1440 on May 30, 2013.



Disclaimer: This blog does not take any responsibility of your profit/loss.

SBIN, DLF and Ranbaxy

SBI results expected today. PSU banks generally are not in good shape and would face NPA issue in near future.
So for today buy SBI 2250 PUT @ 40
Maximum loss could be 5000/-

Bear spread strategy for SBI
buy SBI 2250 PUT @ 40 -42 and Sell 2200 PUT at 25-28.
Maximum loss could be 1800-2000 Maximum profit 4000-4350/-

High risk trades/lottery trades.
Buy DLF 220 PUT around 3/-; Risk 3000/-
Buy RANBAXY 420 PUT around 3/-; Risk 1500/-

Disclaimer: This blog does not take any responsibility of your profit/loss

Tatamotors and Reliance

It seems NIFTY is not in mood of stopping at all. More than 700 points within less than a month is phenomenal progress. It is fueled by statements of RBI Governor and  there is reasonable doubt about who is running the show.

It will be very risky to do any fresh buying at this level from traders perceptive. There could be lot of opportunities in individual stocks. This is even reflecting from FII activities. FIIs are buying stocks but selling futures and options for this expiry.

Low risk trades:

1. Sell Tatamotors 340 CALL at 1.1/1.2. In next about 10 trading days Tatamotors will not cross 340 and it will be easy gain of  Rs.1000/1200 
2. Sell Reliance 900 CALL between 3.5 to 4. It could give profit of Rs. 750 to Rs. 1000/- in next 10 days. 

If NIFTY convincingly crosses 6200 within next three/four treading sessions then it is something never happened before and it is better to stay away for some time from this market.

Disclaimer: This blog does not take any responsibility of your profit/loss.

Strategy for next week

Generally market is not dependent on single factor and always there will be multiple forces which will govern the market. However, over past six months, it seems RBI policy and more than rates cut, rumors about rate cut and statements of RBI Governor, other officials and finance minister about policy are moving the market.

It is phenomenal growth of 600 points in NIFTY in just 16 treading sessions without any substantial and structural change in country, this creates many doubts. There is strong possibility that rally will continue on an auspicious day on Monday. 

Still it is better to sell Calls. Though mood is positive, I think there should be some healthy correction very soon.
Sell 6500 CALL of June expiry at around 20-22.
Those who have earlier sold 6300 CALL of June expiry could still hold the positions. Or if want to play safe,  can square off position at around 60/62 and Sell 6400 CALL Option of July expiry at 65/68 by placing limit order. Please ensure there is credit in your account for this month.

If someone wants to invest for short sell 6400 July expiry CALL at 60/65 will be very good investment.
He will earn Rs. 1800/1900 per lot in just two and half month.
If someone can sell about 8 to 10 lots over Rs. 100,000 investment, he/she will able to earn 18000/20000 in just two and half months.

Risk reward ratio will be very good.

Disclaimer: This blog does not take any responsibility about your profit/loss.

SBIN

NIFTY is moving up based on announcements by RBI governor.
One should be cautious in long positions as FIIs are selling in futures though buying in cash segment in last four five trading sessions. At least book part profit in all Sell PUT positions recommended earlier.

SBIN

PSU banks may not do well after inflation/IIP data and quarterly  results.

Sell SBIN 2450 Call of June expiry at 44 and buy 2500 CALL @ 23. Hold till expiry. Maximum profit could be around 2600 and loss potential about 3600/-
Since there is low liquidity in these options take positions by placing limit orders.



Disclaimer: This blog does not take any responsibility of your profit/loss.

Bear spread strategies

Very purpose of this blog is to find out low risk trades with promising risk reward ratio.  

As per trading strategies in options, second week should be dedicated to bear spread and bull spread strategies.
Since there is no anxiety and speculation about rate cut now, one can expect profit booking in next week in banking, auto and real estate. Based on this assumption, below are two bear spread strategies on rate sensitive stocks.

DLF:
Buy DLF 230 PUT of May expiry around 10.50 and SELL DLF 220 PUT of May expiry around 6.50.
Maximum loss Rs. 4000 and maximum profit potential Rs. 6000/-

To reduce loss (if any) sell 180 PUT of DLF @ .90 and Sell 280 Put of DLF @ 1.00. One would get Rs. 2000 and this will bring down potential loss to about 2000/-. Also it would increase possibility to maximize profit to around Rs. 8000/-. Total investment could be about Rs. 100000/- for next 20/25 days.



TATAMOTORS:
BUY TATAMOTORS 280 PUT of April expiry around 8/- and SELL TATAMOTORS 270 PUT around 4.80-5.10.
Maximum loss could be Rs. 3000/- and maximum profit potential Rs.7000/-
To reduce possible loss of Rs. 3000/- sell Tatamotors 330 CALL of May expiry at 1.25. So maximum loss could be Rs. 1750/-. This will also increase possibility to increase maximum profit up to Rs. 8250/-. Total investment could be around Rs. 100000/- for next 20/25 days.

However, one should exit if profit is around Rs. 2000 in these strategies next week, 2% gain within a week.
Risk reward ratio is very good.

Disclaimer: This blog does not take any responsibility of your profit/loss.

Buy NIFTY PUTs with caution.

Market is bullish, but now it does not seem to have head room left for strong upward move after policy decision.

Buy NIFTY 5800 PUT of May expiry around 32-35.
Exit only if NIFTY crosses 6120 in next two/three days. Hold if NIFTY goes below 5820 in SPOT.
Or book profit at 72.

Maximum loss less than 1750 per lot.

Bear Spread strategy:
Buy NIFTY 5800 PUT of May expiry around 32-35 and sell NIFTY 5700 PUT around 20-25.
Maximum loss could be about 400-500 and profit potential Rs. 2000-2100.

Exit if profit is more than 2% and don't wait till realization of full Rs. 2000. One will able to gain Rs. 2000 only if NIFTY closes below 5700 by May expiry.
If NIFTY goes above 6120 then exit only from 5800 PUT buy and stay with 5700 PUT sell, so eventually trade will end in to marginal profit by end of the month.

Disclaimer: This blog does not take any responsibility of your profit/loss.

Reliance

Sell Reliance 820 CALL between 9-10

Disclaimer: This blog does not take any responsibility of our profit/loss