Option Strategy for Election results day

[trader_ks]

Humm..
So conclusion is that best case can give another max 10% rise while worst case can show correction of 20% min.

how about butterfly at 7000-7500-8000.
total cost
7000 1 lot buy-235
7500 2 lot sell-73=146
8000 1 lot buy -20

Total investment=109

Bear put spread
6300 put-78
5800-16.5

Total =62

Totalstratagy cost ard 109+62=171

This can be taken on 15th evening at ard 3:00pm considering nifty spot at ard 6860. If there is change in nifty spot stratagy can be skewed in that direction.

Experts please give your opinion.

 

[abcpankaj]

Call Spread can become profitable if each leg gain at diff speeds. Surprisingly all CEs are moving at same speed......

How will profit come.....unless one waits till expiry....

-entered 7000/7200 spread at 52 thursday morning , by friday close its 80 , which makes 55-60% rise in a day....not sure I get what is meant by all CEs are moving at same speed.
-Guess one should keep position open till election results , if not expiry

 

[TradeOptions]

http://www.mydigitalfc.com/derivatives/volatility-offer-opportunities-393

Before the election results are announced, exit polls are expected to add to volatile movement in Nifty. So, while taking an exposure, it would be better to factor that in. After the sharp rise on Nifty in Friday’s trading session, prices of call options from May series have become very expensive as they reflect an optimistic view of election results. While on Friday prices of call options have gone up, open interest in the put option in May series has also seen a sharp rise. Whether it is at-the-money put option or out-of- money put options, all of them have seen big build-up of fresh positions.

The question is whether this build-up in put options is being done for hedging or it is being done because some section of the market expects that all euphoria may fizzle out in stock prices and indices on the day of results, even if results are in line with expectations.

Guys what do you think about this big buying in the Nifty Puts on 9 May ?

 

[trader_ks]

I think this is expected as many people are expecting sharp correction in case NDA do not get majority.
But flip side is that market is giving indication of bull run.

So to avoid heavy loss, trader(retail/FII/DII) will purchase put as well to hedge long positions.

But we never know what is in mind of BIG players because their primary motive is to take money from retailers and this is good opportunity for them.

 

[atulfpe]

market already factored those data.....and have moved a bit....so no big move expected on 13th.....

 

[dv29]

I have bought 6750 of 8300CE at average price of 5.20

It closed at 16.20 with intraday high of 24 with huge shorts coming in few of them maybe closed position at 3:15pm.

Hold or sell?
Also since its an out of money option till when can i hold since at expiry iwll expire worthless

will nifty cross 7500?

 

[toocool]

You bought or sold 8300?

 

[dv29]

Bought 8300CE

 

[toocool]

What are you waiting for?

My suggestion sell all tomorrow
The News will be discounted tomorrow for very far options