dear all seniors,
though i am a new to TA and the strategy i am going to discuss may be known to many but i somehow find it very less risky and good one . i just want to know the risks involved in the same.
theory : every month nifty is giving around 2 % movement.
if at the end of every month say today or tomorrow.. if we buy call and put both and if we have a target of say 10 % profit .. with strict sl of 10 %. i think its easily achievable.
example :
yesterday nifty was at 7350. i bought call of 7550 at 63 and put of 7150 at 55 .. 200 up and 200 points minus.
my total cost is 63+55 = 118. total cost is 5900 for one lot. adding brokerage of say 500 Rs. for buy sell both ( roughly) = 6400. now to make 10 % profit we need to make 650 Rs. profit . that is 13 points. today. call is trading at 157 and put is trading at 36. so ttoal is 157+36 = 193. much more than returns I guessed...
u can now do the trailing sl also as per your convenience.
this gives very good returns in major movements in the market.
hope to have views of seniors on this and the risks involved..
though i am a new to TA and the strategy i am going to discuss may be known to many but i somehow find it very less risky and good one . i just want to know the risks involved in the same.
theory : every month nifty is giving around 2 % movement.
if at the end of every month say today or tomorrow.. if we buy call and put both and if we have a target of say 10 % profit .. with strict sl of 10 %. i think its easily achievable.
example :
yesterday nifty was at 7350. i bought call of 7550 at 63 and put of 7150 at 55 .. 200 up and 200 points minus.
my total cost is 63+55 = 118. total cost is 5900 for one lot. adding brokerage of say 500 Rs. for buy sell both ( roughly) = 6400. now to make 10 % profit we need to make 650 Rs. profit . that is 13 points. today. call is trading at 157 and put is trading at 36. so ttoal is 157+36 = 193. much more than returns I guessed...
u can now do the trailing sl also as per your convenience.
this gives very good returns in major movements in the market.
hope to have views of seniors on this and the risks involved..
