Rule 1 : No naked put/ call buy /sell
Take any strategy as mentioned below
strategy 1 :
Buy 1600 call 1 lot @ 27
Sell 1640 call 1 lot @ 10
Risk above 17 rs i.e 17*400 = 6800 (You need minimum capital of 1 lakh for this)
strategy 2 :
Buy 1600 call 1 lot@ 27
Buy 1600 put 1 firstname.lastname@example.org
Risk above is 30% of put /call pair value i.e
30% of 47 approx 15 so total risk is 15*400 = 6000 rs (You need minimum capital of 1 lakh for this)
No over leverage and buy 4 naked call lots, Best way to loose money
Consult your financial adviser before taking trade, options are risky.
Our put /call pair is trading at 57 nice 10 rs profit .
Screaming EXIT ,exit ,exit.
Profit is our only friend , lets take him home.
Our was directional strategy with calculated risk , so keep holding , if nifty gives a pullback after 2 days we square off
around 16 rs hit i,e 16*400= 6400 net loss.
Well our risk was calculated . So no worry.
Strategy 1 closed on Friday .
If you haven't closed ,close it on Monday first thing in morning , Free your capital and lets move on to other trades.