Dear bro,
The point raised by saumyaranjanin is correct. This naked call writing shall be done when you are very sure about market movement. At 5300 expiry the cost of 5200CE shall be 99.95 and not rs. 5 as mentioned . 5200PE will be .05. In darivatives risk management is very important. Spread will work fine if you are sure about movement and also risk will be managed.
Wish you happy trading
The point raised by saumyaranjanin is correct. This naked call writing shall be done when you are very sure about market movement. At 5300 expiry the cost of 5200CE shall be 99.95 and not rs. 5 as mentioned . 5200PE will be .05. In darivatives risk management is very important. Spread will work fine if you are sure about movement and also risk will be managed.
Wish you happy trading
May
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SELL 1 LOt Nifty [email protected]
SELL 1 lot Nifty [email protected]
BUY 6 LOT Nifty 5000PE@71
Sold Nifty 5000PE@130 & holding 5400CE and 4600PE.
5000 PE 6 x 50 = 59 = 17700
5400 CE 1 x 50 = 9 = 450
4600 PE 1 x 50 = 5 = -250
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Total = 17900 (profit.)