Hi joy_mitali,
At this point of time, I'd buy the May 2000 Call. First, the implied volatility is low coz the market is pricing the calls using the futures, not the Nifty. Secondly, the global markets are perking up, and capital flows to emerging markets are starting to rise. But given the choice of any call option, I'd go for the 1970 call. Once the Nifty gets past this level, which is a strong resistance, you'll be in the money and will gain a point for every point the Nifty rises. However, liquidity may be a constraint if you want to buy size.
However, if you feel that 1970 will not be broken in the near future, buy a 1950 put once the Nifty nears 1970. This will reduce the cash outflow on the put premium.
I dont think I'd buy both, for the simple reason that 1900 is a strong support and 2000 will be a psychological resistance, apart from 1970 being a resistance. So, we may see a trading range if FII flows do not increase. If the Nifty closes in this range, there is a good chance of losing more money than on a single position.
Agree/ disagree?