Once in a while market makers gives jackpot in infy so that next time retail traders will by options & market makers will benefit by that .....!!!! :thumb::lol::clap:
Whether this is once in a while jackpot, or a regular affair during result days remains to be seen by me, since I am too new to options.
However, today Sun Pharma results were also declared.
It went down from 950 to 850
Straddle applied to Sun Pharma:
Buy 940 CE + PE = 19 + 9 = 28 Points ( Yesterday near Day end)
Sell 940 CE + PE = 111 + 1 = 112 Points ( Current Trading Values)
Profit = 112 - 28 = 84 Points
Investment 28 points, Return 84 Points in 1 day ( 3 times)
Another jackpot from the market makers.
(implied volatility remained at ~ 45 levels, which I agree is on the high side)