After 4/5 days of consolidation big move in anticipation of good credit policy and revamp by Modi in ministerial groups.
NIFTY may cross 7500 tomorrow, if that happens we have to adjust our strangle due to unfavorable delta then.
If NIFTY crosses 7500, our 7600 CALL will be around 75 and 6900 PUT will be around 4/-
Delat will be around 37-38.
Exit this strategy, meaning book profit in 6900 PUT and book loss in 7600 CALL, total loss per strategy will be around Rs. 40/-
Immediately set up another short strangle.
Sell 7700 CALL around 41-42 and Sell 7200 PUT around 33.
This should able to maintain credit balance in account of about Rs. 35-40 per strategy and delta below 12%.
But take action only if NIFTY crosses 7500-7520 after policy announcement.
Maybe NIFTY will correct after policy announcement, because Government soon has to take tough decisions to curb inflation, improvement in BOP. Market may react to that. Though huge drop is not expected it could again come to 7200 levels within couple of days or before weekend. So wait for confirmation before making any changes in the strangle.Otherwise, if it comes near 7200 we again have to adjust strangle.
There is fair chance that NIFTY might not cross 7560 high made on election day before this expiry.
Disclaimer: This blog does not take any responsibility of your profit/loss
NIFTY may cross 7500 tomorrow, if that happens we have to adjust our strangle due to unfavorable delta then.
If NIFTY crosses 7500, our 7600 CALL will be around 75 and 6900 PUT will be around 4/-
Delat will be around 37-38.
Exit this strategy, meaning book profit in 6900 PUT and book loss in 7600 CALL, total loss per strategy will be around Rs. 40/-
Immediately set up another short strangle.
Sell 7700 CALL around 41-42 and Sell 7200 PUT around 33.
This should able to maintain credit balance in account of about Rs. 35-40 per strategy and delta below 12%.
But take action only if NIFTY crosses 7500-7520 after policy announcement.
Maybe NIFTY will correct after policy announcement, because Government soon has to take tough decisions to curb inflation, improvement in BOP. Market may react to that. Though huge drop is not expected it could again come to 7200 levels within couple of days or before weekend. So wait for confirmation before making any changes in the strangle.Otherwise, if it comes near 7200 we again have to adjust strangle.
There is fair chance that NIFTY might not cross 7560 high made on election day before this expiry.
Disclaimer: This blog does not take any responsibility of your profit/loss
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