We are entering in to new eventful year.
NIFTY might continue it's uptrend till it closes below 6160 on EOD basis.
Let us continue our mission of finding low risk option strategies. First update on Axis bank.
There is high likelihood Axis bank will move sideways/downward for few trading sessions. It might struggele to close below 1278, low of December 24. If it goes near 1278 on Monday morning, 1350 CALL would be priced near 26-27. This is first target for profit booking.
As regards to new strategies
1) Short straddle on Reliance
Sell 960 CALL between 3.50-4.00 and sell 820 CALL between 3.50-4.00. As usual short straddle must be done in multiples of two lots each for reasons specified earlier in this blog.
Delta of this strategy is presently less than 0.5%. It seems to be very safe and considering total four lots margin would be blocked around 75000/- for profit around 3000 to 4000. This is three times bank interest. There is more than 95% chance that one should able to make this 40% gain in next 30 days.
2) Sell NIFTY CALLs
Sell 6500 CALL in the range of 50-55 of January expiry
Sell 6600 CALL in the range of 24-28 of January expiry.
Again don't employ all you capital at one go but invest only 30% of capital now if NIFTY continues upward momentum we will average few lots later.
3) Iron candor on Auropharma
This could be bit costly for margin requirement as per NSE site (about Rs. 2.75 lacs), but it could be very promising as risk reward ratio is very favorable.
Buy 470 CALL at around 2.50
Sell 460 CALL at around 2.90
Sell 330 PUT at around 9.65
Buy 320 PUT at around 1.70
Check prices before entering in to the contracts, if all prices are in the ranges mentioned above then maximum profit will be more than 16500 and maximum loss could be around 3300.
So risk reward ratio is very good.
4) Apollotyre:
Sell 100 PUT around 5.95 and buy 97.5 PUT around 4.50
Maximum loss could be 4000 and maximum profit will be about 6000.
Disclaimer: This blog does not take any responsibility of your profit/loss
NIFTY might continue it's uptrend till it closes below 6160 on EOD basis.
Let us continue our mission of finding low risk option strategies. First update on Axis bank.
There is high likelihood Axis bank will move sideways/downward for few trading sessions. It might struggele to close below 1278, low of December 24. If it goes near 1278 on Monday morning, 1350 CALL would be priced near 26-27. This is first target for profit booking.
As regards to new strategies
1) Short straddle on Reliance
Sell 960 CALL between 3.50-4.00 and sell 820 CALL between 3.50-4.00. As usual short straddle must be done in multiples of two lots each for reasons specified earlier in this blog.
Delta of this strategy is presently less than 0.5%. It seems to be very safe and considering total four lots margin would be blocked around 75000/- for profit around 3000 to 4000. This is three times bank interest. There is more than 95% chance that one should able to make this 40% gain in next 30 days.
2) Sell NIFTY CALLs
Sell 6500 CALL in the range of 50-55 of January expiry
Sell 6600 CALL in the range of 24-28 of January expiry.
Again don't employ all you capital at one go but invest only 30% of capital now if NIFTY continues upward momentum we will average few lots later.
3) Iron candor on Auropharma
This could be bit costly for margin requirement as per NSE site (about Rs. 2.75 lacs), but it could be very promising as risk reward ratio is very favorable.
Buy 470 CALL at around 2.50
Sell 460 CALL at around 2.90
Sell 330 PUT at around 9.65
Buy 320 PUT at around 1.70
Check prices before entering in to the contracts, if all prices are in the ranges mentioned above then maximum profit will be more than 16500 and maximum loss could be around 3300.
So risk reward ratio is very good.
4) Apollotyre:
Sell 100 PUT around 5.95 and buy 97.5 PUT around 4.50
Maximum loss could be 4000 and maximum profit will be about 6000.
Disclaimer: This blog does not take any responsibility of your profit/loss
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