NIFTY has shown some correction back of Iran news, it could be simple profit booking. But it was good for our delta/strangle strategy as delta is around 12 now.
So hold the strategy mentioned in earlier posts.
The main objective of this blog is to find safe strategies.
1.) NIFTY
In bull market every lower level will be bought and NIFTY should not go below 7445, if it has to respect EW theory.
As per EW theory cardinal rules, wave 4 should not enter in territory of wave 1 and wave 3 should not be the shortest.
Kindly see attached chart, assuming numbering is one of the most appropriate one, then NIFTY spot should not go below 7445-7440 and show reasonable rise before further crack towards 7200.
How to trade this view?
If you could sell 7800 CALL of June expiry around 15-20. it will be one of the safest option. Premiums will go down after Thursday and even if NIFTY crosses 7700 next week, trader need not worry much.
Sell 7300 PUT option around 15-20.
Delta will be around 2% and will be reasonably safe.
As per OI also NIFTY should close between 7800 and 7300 on June 26.
2.) TATAMOTORS
More safe options will be TATAMOTORS option, but it will require margin money around Rs. 100000, if both contracts to be executed.
One can enter in only one contract.
It is trading around 435.
Very strong support around 405-410 and it will be difficult for TATAMOTORS to reach 500 before expiry this month, unless some mega news which I am not aware of.
To trade this view;
Sell TATAMOTORS 500 CALL around 1.25 and sell 400 PUT around 1.2
Rs. 100,000 investment for 12 days would fetch Rs. 2000/- (after accounting for brokerage and other expenses), which is four to five times more than normal bank FD interest.
3.) DLF
DLF has corrected a lot, it has very strong support in the region of 198-202 and it should give some technical bounce before further drop. See chart attached.
Sell DLF 170 PUT around Rs. 1/-
One can easily earn Rs. 2000/- by investing Rs. 50,000/- in margin money.
These all are reasonably safe strategies and there is more than 90% chance that on total investment of Rs. 250.000 for 12 days one can earn more than Rs. 6000/- in these three strategies.
Risk reward ratio is very good.
Disclaimer: This blog does not take any responsibility of your profit/loss.
So hold the strategy mentioned in earlier posts.
The main objective of this blog is to find safe strategies.
1.) NIFTY
In bull market every lower level will be bought and NIFTY should not go below 7445, if it has to respect EW theory.
As per EW theory cardinal rules, wave 4 should not enter in territory of wave 1 and wave 3 should not be the shortest.
Kindly see attached chart, assuming numbering is one of the most appropriate one, then NIFTY spot should not go below 7445-7440 and show reasonable rise before further crack towards 7200.
How to trade this view?
If you could sell 7800 CALL of June expiry around 15-20. it will be one of the safest option. Premiums will go down after Thursday and even if NIFTY crosses 7700 next week, trader need not worry much.
Sell 7300 PUT option around 15-20.
Delta will be around 2% and will be reasonably safe.
As per OI also NIFTY should close between 7800 and 7300 on June 26.
2.) TATAMOTORS
More safe options will be TATAMOTORS option, but it will require margin money around Rs. 100000, if both contracts to be executed.
One can enter in only one contract.
It is trading around 435.
Very strong support around 405-410 and it will be difficult for TATAMOTORS to reach 500 before expiry this month, unless some mega news which I am not aware of.
To trade this view;
Sell TATAMOTORS 500 CALL around 1.25 and sell 400 PUT around 1.2
Rs. 100,000 investment for 12 days would fetch Rs. 2000/- (after accounting for brokerage and other expenses), which is four to five times more than normal bank FD interest.
3.) DLF
DLF has corrected a lot, it has very strong support in the region of 198-202 and it should give some technical bounce before further drop. See chart attached.
Sell DLF 170 PUT around Rs. 1/-
One can easily earn Rs. 2000/- by investing Rs. 50,000/- in margin money.
These all are reasonably safe strategies and there is more than 90% chance that on total investment of Rs. 250.000 for 12 days one can earn more than Rs. 6000/- in these three strategies.
Risk reward ratio is very good.
Disclaimer: This blog does not take any responsibility of your profit/loss.
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