Everything would depend on RBI and FED for next direction of the market.
It is better not to do new aggressive trades.
Hold on to IDFC PUT for target above 6.25. Hold on to sell NIFTY 6400 CALLs of December expiry and book profit at around 8-10.
Sell NIFTY 6400 CALLs of January expiry around 100-102 and book profit around 40-45. These are all earlier trades. Keep booing profits in view of very volatile week ahead.
Short Straddle
Sell 6700 NIFTY CALL of January expiry between 22-24 and Sell 5700 NIFTY PUT of January expiry between 18-22.
Today Delta of this strategy is around 3.7%. Do this in multiples of two lots and enter in to trades simultaneously.
As long as delta is less than 17-18 one can safely stay foot in this strategy. If this delta value crosses 18, please prepare to exit one lot each. In 9 out of 10 times these options would end worthless and one would able to keep entire premium amount.
Total investment in margin money in 4 lots (2 CALLs and 2 PUTs) will be around 60000 and one would able to earn 4000 (or around 3500 discounting for all costs including brokerage) in next 45 days.
A fixed deposit bank interest would able to fetch about Rs. 700-800 in 45 days over Rs. 60,000/- investment, whereas there is reasonable possibility that one would able to gain four to five times of FD's yield in same amount of time. So this strategy is one of the safest strategy. One can calculate delta and keep a track of this investment, I will also mention on the blog if in case there would be any needs to exit from this strategy.
CALL Sell strategy:
NIFTY is still trading at very high levels. It would be very difficult to cross 6700 before January expiration, even if there is fair chance that it would continue it's northward movement.
So sell 6700 CALL of January expiry at around 20-23 . Don't invest your entire capital and keep averaging if it goes up in future.
One can make combination of both these strategies and sell 4 CALLs of 6700 of January expiration and sell 2 PUTs of 5700 of January expiration. Or work with multiples of these contracts.
Disclaimer: This blog does not take any responsibility of your profit/loss
It is better not to do new aggressive trades.
Hold on to IDFC PUT for target above 6.25. Hold on to sell NIFTY 6400 CALLs of December expiry and book profit at around 8-10.
Sell NIFTY 6400 CALLs of January expiry around 100-102 and book profit around 40-45. These are all earlier trades. Keep booing profits in view of very volatile week ahead.
Short Straddle
Sell 6700 NIFTY CALL of January expiry between 22-24 and Sell 5700 NIFTY PUT of January expiry between 18-22.
Today Delta of this strategy is around 3.7%. Do this in multiples of two lots and enter in to trades simultaneously.
As long as delta is less than 17-18 one can safely stay foot in this strategy. If this delta value crosses 18, please prepare to exit one lot each. In 9 out of 10 times these options would end worthless and one would able to keep entire premium amount.
Total investment in margin money in 4 lots (2 CALLs and 2 PUTs) will be around 60000 and one would able to earn 4000 (or around 3500 discounting for all costs including brokerage) in next 45 days.
A fixed deposit bank interest would able to fetch about Rs. 700-800 in 45 days over Rs. 60,000/- investment, whereas there is reasonable possibility that one would able to gain four to five times of FD's yield in same amount of time. So this strategy is one of the safest strategy. One can calculate delta and keep a track of this investment, I will also mention on the blog if in case there would be any needs to exit from this strategy.
CALL Sell strategy:
NIFTY is still trading at very high levels. It would be very difficult to cross 6700 before January expiration, even if there is fair chance that it would continue it's northward movement.
So sell 6700 CALL of January expiry at around 20-23 . Don't invest your entire capital and keep averaging if it goes up in future.
One can make combination of both these strategies and sell 4 CALLs of 6700 of January expiration and sell 2 PUTs of 5700 of January expiration. Or work with multiples of these contracts.
Disclaimer: This blog does not take any responsibility of your profit/loss
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