Lets start a new thread for possible option stategies before union budget on friday.
Tell us about your bullish/bearish bias and the option stategy to support that bias.
I have a bearish bias on the market but feel that the market will just rise to 5000 after budget and then contiue its fall to 4500 or below that.
I am planning a bull put spread at 4800-4700 level and a bear call spread at 4900-5000 level and collect the credit by selling 4800 put and 4900 call and at the same time manage the upside and downside risk by buying out of money 5000 call and 4700 put. Markets are choppy and trading around 4850, exactly in the middle of option spreads. Net credit will be around Rs 80 for combined spread as per todays closing price per lot of Nifty....so Rs 4000 per lot.
Once the budget is out, then a directional strategy like either a bear put or a bull call spread.
Now tell us about your bias and possible strategy.
Tell us about your bullish/bearish bias and the option stategy to support that bias.
I have a bearish bias on the market but feel that the market will just rise to 5000 after budget and then contiue its fall to 4500 or below that.
I am planning a bull put spread at 4800-4700 level and a bear call spread at 4900-5000 level and collect the credit by selling 4800 put and 4900 call and at the same time manage the upside and downside risk by buying out of money 5000 call and 4700 put. Markets are choppy and trading around 4850, exactly in the middle of option spreads. Net credit will be around Rs 80 for combined spread as per todays closing price per lot of Nifty....so Rs 4000 per lot.
Once the budget is out, then a directional strategy like either a bear put or a bull call spread.
Now tell us about your bias and possible strategy.