Technical analysis of NIFTY:
NIFTY is near upper band, uncharted territory, at all time high.
In chart, it is clear NIFTY will by and large stay in a broad range 7900-7400, and this range is expanding at higher side but it could face some intermittent resistance around 7780-7810 area.
Chart is self explanatory.
How to trade this view?
Sell 8200 CALL around 22-25 and sell 7300 PUT around 22-25.
Delta is very low. It is close to 2. This seems to be very safe for the month.
About Rs. 100,000 investment one should able to sell 2 CALLs and 2 PUTs and this should able to fetch premium about Rs. 4000/-
Accounting for all costs, one should able to earn Rs. 3000/- per one lakh of investment within next 15-20 days and this is almost five times of the bank FD interest at very low risk.
Disclaimer: This blog does not take any responsibility of your profit/loss
NIFTY is near upper band, uncharted territory, at all time high.
In chart, it is clear NIFTY will by and large stay in a broad range 7900-7400, and this range is expanding at higher side but it could face some intermittent resistance around 7780-7810 area.
Chart is self explanatory.
How to trade this view?
Sell 8200 CALL around 22-25 and sell 7300 PUT around 22-25.
Delta is very low. It is close to 2. This seems to be very safe for the month.
About Rs. 100,000 investment one should able to sell 2 CALLs and 2 PUTs and this should able to fetch premium about Rs. 4000/-
Accounting for all costs, one should able to earn Rs. 3000/- per one lakh of investment within next 15-20 days and this is almost five times of the bank FD interest at very low risk.
Disclaimer: This blog does not take any responsibility of your profit/loss
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