Update:
Reliance gave good profit booking opportunity on Friday.
Everyday NIFTY is honoring upper line of channel. It has done it in eight times in past 12 trading sessions. This might be indicating that NIFTY is looking forward to slightly good news to cross 8350-8370 band. It again might touch this band on Monday. Global markets closed positive on Monday. The lower line of channel is around 8190.
We can not control market but can control us. FIIs are buying continuously. There must be something which we don't know or unable to anticipate. BN is in very narrow range. If NIFTY has to go up BN must participate.
So strategy for Monday 26 October could be,
Sell 4 lots of NIFTY 7800 CALLs around 500-550, and buy 1 lot of Andhrabank CALL of strike price 67.5 between 1.50-2.00.
One could hold the strategy if in profit or loss is below Rs. 5000/-
I am fully aware that there is very low (or zero!) possibility that NIFTY will go near or below 7800 under present circumstances till expiration, but selling 7800 CALLs will credit the account by Rs. 50,000/- and I found this idea lucrative. Also there is about Rs. 25/- premium in this contract and this is not bad too!
Disclaimer: This blog does not take any responsibility of your profit/loss.
Reliance gave good profit booking opportunity on Friday.
Everyday NIFTY is honoring upper line of channel. It has done it in eight times in past 12 trading sessions. This might be indicating that NIFTY is looking forward to slightly good news to cross 8350-8370 band. It again might touch this band on Monday. Global markets closed positive on Monday. The lower line of channel is around 8190.
We can not control market but can control us. FIIs are buying continuously. There must be something which we don't know or unable to anticipate. BN is in very narrow range. If NIFTY has to go up BN must participate.
So strategy for Monday 26 October could be,
Sell 4 lots of NIFTY 7800 CALLs around 500-550, and buy 1 lot of Andhrabank CALL of strike price 67.5 between 1.50-2.00.
One could hold the strategy if in profit or loss is below Rs. 5000/-
I am fully aware that there is very low (or zero!) possibility that NIFTY will go near or below 7800 under present circumstances till expiration, but selling 7800 CALLs will credit the account by Rs. 50,000/- and I found this idea lucrative. Also there is about Rs. 25/- premium in this contract and this is not bad too!
Disclaimer: This blog does not take any responsibility of your profit/loss.
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