Option trading strategy

#1
Hi,

I am new to this forum and trading. I have read several threads in this forum and have gained some insight into option trading strategies. To be honest, this is the most informative site I have come across so far. I have gone through quite a lot of threads in this forum and frankly have understood some but most of it (mostly technical ones) stumped me. :(

I am starting this thread to seek guidance from senior members of this forum to get advice on some of the option trades that I have thought of. I hope this will help novices like me to understand this business better.

mohit
 
#2
Following are some trades that I am thinking of for September 2009. I will appreciate comments, advice on same.


Trade 1 (one lot for each strike price)

Strike Price-Rate-Option Type-Buy/Sell
4700-195.00-PUT-SELL
4600-161.00-CALL-SELL
4200-31.85-PUT-BUY
5200-10.25-CALL-BUY

Max profit = 10695 if nifty is between 4600 to 4700 on expiry
Max loss = 11805 if nifty is more than 5100 on expiry or 9035 if nifty is below 4400 or more than 4900 on expiry

Profit range = 4400 - 4900


Trade 2 (one lot for each strike price)

Strike Price-Rate-Option Type-Buy/Sell
4400-70.00-PUT-SELL
5000-29.00-CALL-SELL
3500-2.20-PUT-BUY
5300-6.10-CALL-BUY

Max profit = 4567.50 if nifty is between 4400 to 5000 on expiry
Max loss = ranges from 3000 to 1100 if nifty is above 5100 on expiry and from 3000 to 40000 if nifty is below 4300 on expiry.

Profit range = 4350 - 5050
 

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