budget 2013 coming want to buy call & put both suggest me

S

shashank yadav

Member
#1
#1
As budget 2013 coming there may be a sharp move in any side so I want to buy call & put both suggest me of what strike price and month I should buy put & call .
how much lot should be purchased ?
 
VIKAS 21

VIKAS 21

Well-Known Member
#4
#4
JUST indivisually watch the trends......

everyday some stocks are in top gainer/ top looser list. even on the budget day will too.

Big fish already know what is going to be the effect of budget, they are trading accordingly.
 
Smart_trade

Smart_trade

Moderator
#5
#5
shashank yadav said:
As budget 2013 coming there may be a sharp move in any side so I want to buy call & put both suggest me of what strike price and month I should buy put & call .
how much lot should be purchased ?
Click to expand...
Still there are 4 trading days for the budget session. The strike price and call/put to be decided 1 day before the budget.

I have done a trade of buy NF and buy 5900 put equal lots when market crashed today. The risk is limited and if NF improves tomorrow or next week before going into budget, this trade will make money. But do this trade only if you understand the risk involved in it and are comfortable with it as it is a contra trade but stoploss is built into it.

Smart_trade
 
DanPickUp

DanPickUp

Well-Known Member
#6
#6
Smart_trade said:
Still there are 4 trading days for the budget session. The strike price and call/put to be decided 1 day before the budget.

I have done a trade of buy NF and buy 5900 put equal lots when market crashed today. The risk is limited and if NF improves tomorrow or next week before going into budget, this trade will make money. But do this trade only if you understand the risk involved in it and are comfortable with it as it is a contra trade but stop loss is built into it.

Smart_trade
Click to expand...
Dear ST

This is called a synthetic call. I love this strategy as it is a nice one to trade when ever market is at support levels and there is no clear clue where markets could move to.

An other moment to implement the strategy is when the put call ratios are very high like 1:2.
 
C

comm4300

Well-Known Member
#8
#8
shashank yadav said:
there may be a sharp move in any side
Click to expand...
you need to quantify this "sharp move" prediction of yours....100 point move /200/300 point move by march

shashank yadav said:
so I want to buy call & put both suggest me of what strike price and month I should buy put & call .
Click to expand...
Strangle is a good strategy.
ATM strikes offer good opportunity to make money IF the said sharp move happens. OTMs may appear cheap, but may not react to a muted move.
Which month to buy = Is the reaction you expect going to happen on budget day? or post budget in phases? Then March series would be safe.

shashank yadav said:
how much lot should be purchased ?
Click to expand...
depends on your risk appetite.
 
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