To play during election results day

[ananths]

I have Airtel & Vodafone connection no Idea

On serious note, stay away from Market in such events & enjoy watching this game at risky times. No naked positional trading.
Day trading with strict SL with the flow. Ananth view on buying both OTM option looks good for such event. :thumb:

One of my friends took a chance during last election...I guess the result was on a weekend and he was holding a single OTM call option. I also had the same position but squared off on Friday fearing the result. His risk was around 1.5k and he got a return of 40-50K.

So one can take minimum one lot on each side without any fear.:thumb:

 

[whisky]

One of my friends took a chance during last election...I guess the result was on a weekend and he was holding a single OTM call option. I also had the same position but squared off on Friday fearing the result. His risk was around 1.5k and he got a return of 40-50K.

So one can take minimum one lot on each side without any fear.:thumb:

Playing both side is good strategy but playing one side would be pure gamble.:thumb:

 

[neon_786]

Hi Guys,

I have some question, Please clear the following doubts:

We will be having election in 2014 (may be in 2013 can also happen), suppose today is the election results will be announced..How to trade options.I have seen in 2008 that after the election result announced nifty rose by some 250+ points.Being an Option trader, i should be able to capitalise the volatility:

So please tell me your opinion about how to trade during election results..

You can explain taking an example of nifty and suggest in option strategy like strangle/straddle etc etc..

Take nifty trading at 5200 and explain all the possible scenario and the probable profit from various option strategy..While mentioning strategy please suggest strike price and various possibility...

I think the markets are factored for Mr.Modi to become the PM (If it was the Congressman then I think they would have hit lifetime lows , atleast that's what I think ) I think the best strategy is to buy OTM puts and calls and let the results make us some money.. If we recover 10% of the taxes we pay to the Govt for which they do not do any work, I think that should do.. But wait, they tax this 10% gain also ! Bloody STCG All the best Anup Bhai

 

[RAAMAKANT]

Hmmm, Everybody is thinking to buy OTM pair.
but Exit poll on 4th itself will discount everything on 5th Dec. and keep the retailers in INFY Results like salutation.
It's my thought & I may be wrong.

 

[anup]

Guys I am not going to play these state election...My question is for 2014 Loksabha election....IV will be very high ....

 

[RAAMAKANT]

Hmmm, Everybody is thinking to buy OTM pair.
but Exit poll on 4th itself will discount everything on 5th Dec. and keep the retailers in INFY Results like situation on.
It's my thought & I may be wrong.

So is there anything Left for Monday.............?

 

[anup]

So is there anything Left for Monday.............?

Picture abhi baaki hai mere dost..I expect a correction of nifty to 6230-6210 till tomorrow and then again zoom back to all time high..Correction can be used as a buying opportunities

 

[cinderblock]

One of my friends took a chance during last election...I guess the result was on a weekend and he was holding a single OTM call option. I also had the same position but squared off on Friday fearing the result. His risk was around 1.5k and he got a return of 40-50K.

So one can take minimum one lot on each side without any fear.:thumb:

40-50K with a risk of 1.5K with 1 lot is impossible. Let me repeat, impossible.

With a lot size of 50 and assuming a risk of 1.5K would mean the options were worth Rs. 30. Look at the bhavcopy for 15th of May 2009. Nifty closed at 3671. The only OTM options with a risk of 1500 and below are options with a strike of 4000 and above.

On the 18th of May 2009 (Circuit up), the maximum you would have earned for OTM options for 4000 strike and above (assuming you sold at the highs of the day) is around 19000 per lot.

Only if you had bought options of 3400CE and below would you have earned 50,000 per lot but these were not OTM on the day before the elections and they were worth 250 - 300 per lot (risk of 13K-15K) and above for a better part of May 2009 before the elections.

So you see, these incredible risk-rewards are almost impossible in the F&O market especially when everyone knows well beforehand that there's going to be a big move!

 

[RAAMAKANT]

Picture abhi baaki hai mere dost..I expect a correction of nifty to 6230-6210 till tomorrow and then again zoom back to all time high..Correction can be used as a buying opportunities

Dont forget World Markets are Tumbling and indicating much Lower Levels.

My Friend, The truth is
"Buy on HOPES and Sell the FACTS."

 

[SaravananKS]

40-50K with a risk of 1.5K with 1 lot is impossible. Let me repeat, impossible.

With a lot size of 50 and assuming a risk of 1.5K would mean the options were worth Rs. 30. Look at the bhavcopy for 15th of May 2009. Nifty closed at 3671. The only OTM options with a risk of 1500 and below are options with a strike of 4000 and above.

On the 18th of May 2009 (Circuit up), the maximum you would have earned for OTM options for 4000 strike and above (assuming you sold at the highs of the day) is around 19000 per lot.

Only if you had bought options of 3400CE and below would you have earned 50,000 per lot but these were not OTM on the day before the elections and they were worth 250 - 300 per lot (risk of 13K-15K) and above for a better part of May 2009 before the elections.

So you see, these incredible risk-rewards are almost impossible in the F&O market especially when everyone knows well beforehand that there's going to be a big move!

Making 30K from 1.5K is Possible!!!!! I can recall one very Recent Trade of my friend He Bought 6 Lots 5300CE @ Rs 5.5 and held it till expiry (Expiry was 5406 )

Profit Made 30K !!!!!!!

But it is Possible Before Election Result ???
I doubt
Since in 2009 Before Election I sold 3900 CE (Naked) even after Hugh Gapup I managed limit loss only to Rs 12000/- ( I could able to buy back the call option even 30 to 40 Pts less than it's intrinsic value