Can you believe that a Nifty Call/Put option pricing at Re.2/- can fetch upto Rs.20 or even more on an expiry day (last-15-minutes) Trade? But it's regarded as a high risk type of trade. Now let me explain the real risk involved in this trade. Let's say you purchase a Nifty Call (current month)that cost Rs.2/- at around 3.15 P.M on an expiry day. The maximum risk you are having is Rs.2/- + brokerage & transaction charges or say Rs.3/- in total. While this Call has a profit potential of Rs.17 or even more if Nifty goes up around 30 points from the buy level before 3:30 P.M. There are some conditions to fulfill to enter this kind of last-minute trade on an expiry day such as the suggested Figure example given below :-
Let's say Nifty Spot is trading at 4290 (+20 from previous close of 4270) at around 3:15 P.M on a confirmed uptrend. We buy this near ATM Nifty Call of strike price 4300 (underlying Spot Nifty at 4290) at Rs.2 or Rs.3 at around 3:15 P.M. And after 12 minutes at 3:27 P.M, Nifty goes up another 30 points from that level of 4290 thereby reaching 4320 level. That 4300 Strike price Call will have a exercise value of Rs.20/-. So, we will be able to sell it at around Rs.20 at 3:28 P.M giving us a reward of Rs.17/- with a risk of Rs.3/- within a timeframe of 15 minutes or less.
However, this is a highly time-sensitive trading and can be done by those traders who uses direct trading terminal on their PCs or has somebody at the terminal who trades on his behalf.
Let's say Nifty Spot is trading at 4290 (+20 from previous close of 4270) at around 3:15 P.M on a confirmed uptrend. We buy this near ATM Nifty Call of strike price 4300 (underlying Spot Nifty at 4290) at Rs.2 or Rs.3 at around 3:15 P.M. And after 12 minutes at 3:27 P.M, Nifty goes up another 30 points from that level of 4290 thereby reaching 4320 level. That 4300 Strike price Call will have a exercise value of Rs.20/-. So, we will be able to sell it at around Rs.20 at 3:28 P.M giving us a reward of Rs.17/- with a risk of Rs.3/- within a timeframe of 15 minutes or less.
However, this is a highly time-sensitive trading and can be done by those traders who uses direct trading terminal on their PCs or has somebody at the terminal who trades on his behalf.
put small amount of money and get big reward. Very risky trades. You may lose your money completely. So always try with max 1% of your capital.