Looking at the range of Bank Nifty I have taken the following trade
Sold : 51500 Call at 15.75 and 45000 Put at 30
Put qty is half of the call quantity
hopefully both will be zero
Please note this is a naked sell and profit is limited but loss can be unlimited, if one wants to define the risk and profit, cordon this off with respective option buy.
Sold : 51500 Call at 15.75 and 45000 Put at 30
Put qty is half of the call quantity
hopefully both will be zero
Please note this is a naked sell and profit is limited but loss can be unlimited, if one wants to define the risk and profit, cordon this off with respective option buy.
Comment:
45000 Pe from 30 to 18.5 , rocking
Comment:
51000 CE at 4.75
4500 PE from 18 to 200, now 144.
Wild swing with the gap down, thats why naked option selling can be life threatening and best to cordon off with respective buys, nevertheless am sure it will flat-out to zero, but one cannot predict the market entirely.
Luckily for me i exited all positions a day before and have now shorted 43000 Pe at 35 and 48500 CE at 17.5
4500 PE from 18 to 200, now 144.
Wild swing with the gap down, thats why naked option selling can be life threatening and best to cordon off with respective buys, nevertheless am sure it will flat-out to zero, but one cannot predict the market entirely.
Luckily for me i exited all positions a day before and have now shorted 43000 Pe at 35 and 48500 CE at 17.5
One can book this and sell 50500 for 14.5
4500 at 29.45 - same can be kept as it is