Dear Raj,

You said yday for pair selling @least need 200 diference in strikes?

If we watch today/yday we not got any strikes (200 dif) which is also have the magic no of 120 (90+30)...so in this scenerio how can we enter as market in strong trend...?

Yes I think 200 points minimum is required. Ideally it would be good to have 500 points, which you normally get in the beginning of the Series.

120 points is good in the beginning of the month.

This month is also Long with more or less 5 weeks of trading.

So Let us say that in this month we had 25 trading days.

So for 120 points to Expire to Zero it will take 25 days. So in a day due to Time value (theta), the Option will loose ~4.8 points. In a week it would be 5 * 4.8 = 24 points (for a normal month with 20 trading days - the weekly target would be 30 points)

So for JUL-15 with 5 weeks of Trading.

First week, Find a Pair with 120 points and make sure the ratio is either 50:50 if neutral or 75:25 if biased or Trending.

Second Week - 120-24 = 96 points

Third week - 96-24 = 72 points.

Fourth week - 72-24 = 48 points.

The above is for Positional or Weekly trading. Daily we can expect some 4.8 points and not 10 points or 20 points.

So we are more less at the end of third week, find a pair with 48 points with one strike at 36 and other strike at 12. Go for 8500PE-8850CE Pair @ 49