Sell/write may 5200 call at 60+ t 0.05 paisa

#8
if nifty goes to 5300 then this call can generate equivalent loss.Any upside in nifty will result unlimited loss. in this case the risk is not managed rather it is being negelected. it has the potentiality to result -1000% loss also in case nify goes up to 6000.
 
#9
Silly, let the Nifty touch 5200 by May end first, option volumes are toooooooooooooooooooooooooo Low 5200 CE values at max. will be Rs.5 if Nifty is 5300 as u said by month end. If Nifty Crosses 5600 by OVER Night its GREAT MIRACLE hope no stock market has seen this MIRACLE:lol::lol:.....then there we will sure to have unlimited loss:lol::lol:
 
#10
Silly, let the Nifty touch 5200 by May end first, option volumes are toooooooooooooooooooooooooo Low 5200 CE values at max. will be Rs.5 if Nifty is 5300 as u said by month end. If Nifty Crosses 5600 by OVER Night its GREAT MIRACLE hope no stock market has seen this MIRACLE:lol::lol:.....then there we will sure to have unlimited loss:lol::lol:
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
 

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