Raghu,
Volatility is too much for INFY options. It's in 50's 60's... It will soon drop after results announcement. Trading cost for Esse' strategy would be Rs. 76/-, taking CMP (2600PE and 3100CE). For the last four occasions, cost wasn't this expensive with the success rate of 75%. Best being Jan'13 with more than 1700% returns and worst being Oct'12 with -85%.
We will need at least 300-350 points to move to see some profit. (Guessing based on the last four results). INFY has moved 150-480 points in the last four results.
With this much volatility, short strangle may be a better strategy. But if we are on the wrong side, it will give more loss than Long straddle.
PS: I don't know much about options.
Volatility is too much for INFY options. It's in 50's 60's... It will soon drop after results announcement. Trading cost for Esse' strategy would be Rs. 76/-, taking CMP (2600PE and 3100CE). For the last four occasions, cost wasn't this expensive with the success rate of 75%. Best being Jan'13 with more than 1700% returns and worst being Oct'12 with -85%.
We will need at least 300-350 points to move to see some profit. (Guessing based on the last four results). INFY has moved 150-480 points in the last four results.
With this much volatility, short strangle may be a better strategy. But if we are on the wrong side, it will give more loss than Long straddle.
PS: I don't know much about options.