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!