Re: Trading strategy for nifty for december,2014
Hi somatung,
Today nifty rose by 129.50 to 8159.30.But it opened at 8138.9. So compared to open price it didn't rise much. Okay, by the way,My next nifty strategy would be to sell put option of 8000 strike price which is being traded at Rs.10.8 along with buying of call option of 8300 strike price at the today's closing price i-e Rs.13.80. This is not collar.Keep in mind option greeks, expected rate of return,regression,momentum,ADX,VWMA etc
happy trading
Yeap, I know about that rise.
So your put has lost 40.80 Rs and your call has lost 76 Rs according to what is shown on the offical side today (18.12.2014) from
http://www.nseindia.com/live_market...instrument=OPTIDX&symbol=NIFTY&date=24DEC2014 = Loss of at least 116 Rs.
Your future made, if you kept it, 129.50 Rs. So you would have a profit of around 13 Rs, commissions not included on all legs.
Now you would add the long call 8300 for 13.80 Rs, which would be a so called: Free leg (not considering any commission you are open to pay and taxes), as you have around that amount of profit.
Until now no profit nor any loss with your given legs. :thumb: Very well accepted as you are strategically placed.
Now you would have left: Long future, short 8000 call and long 8300 call. All three legs together look more or less like a long future with a little flat space around the current future spot price. If market now moves up, as you think so because of what you now did show, then your profit is good on the up side and on the down side you are endless open. So let's hope market moves up.
Love what you post and interesting to talk with you. Have a nice evening / Dan