The objective of this blog is to find out safe option trading strategies with very low risk.
We are in great bull run.
Everything is looking rosy, everyone is bullish on NIFTY, and maybe this is the time NIFTY will use for healthy correction for further up-move.
Last time it was broad-based rally, which took around 12 days to rise 400 points and crashed in just 5 days. Now this rise of 400 points from July 15 (just 8 trading sessions!), which is not rally across the market, only in some sectors, with banking not participating to an extent it should, could curb at current levels or maximum around 7920. See the chart. 7900-7920 is the strong supply zone.
Safe trading strategies based on this view:
1. Bear Spread strategy in NIFTY
Buy 7800 PUT around 30 and sell 7700 PUT around 10.
Risk is only Rs. 1000/- whereas profit potential Rs. 4000/- if NIFTY corrects only 2% before expiry. This is the safest strategy for this view point.
2. Strategy for more risk takers:
Sell 7900 NIFTY CALL around 20.
3. Strategy for super risk takers:
Sell 7800 NIFTY CALL around 65-69
Those who are holding NIFTY 8000 CALLs of August expiration, could add few more to average the cost.
Disclaimer: This blog does not take any responsibility of your profit and loss
We are in great bull run.
Everything is looking rosy, everyone is bullish on NIFTY, and maybe this is the time NIFTY will use for healthy correction for further up-move.
Last time it was broad-based rally, which took around 12 days to rise 400 points and crashed in just 5 days. Now this rise of 400 points from July 15 (just 8 trading sessions!), which is not rally across the market, only in some sectors, with banking not participating to an extent it should, could curb at current levels or maximum around 7920. See the chart. 7900-7920 is the strong supply zone.
Safe trading strategies based on this view:
1. Bear Spread strategy in NIFTY
Buy 7800 PUT around 30 and sell 7700 PUT around 10.
Risk is only Rs. 1000/- whereas profit potential Rs. 4000/- if NIFTY corrects only 2% before expiry. This is the safest strategy for this view point.
2. Strategy for more risk takers:
Sell 7900 NIFTY CALL around 20.
3. Strategy for super risk takers:
Sell 7800 NIFTY CALL around 65-69
Those who are holding NIFTY 8000 CALLs of August expiration, could add few more to average the cost.
Disclaimer: This blog does not take any responsibility of your profit and loss
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