Nifty 50 IndexShort
Nifty May 27 F&O Strategy
Updated
Nifty
CMP 14578
Last time when Nifty was at 14800 we felt that Nifty may not go below 50 day EMA
and felt it could be a buy on dips market.
- however currently Nifty is trading below 20 day & 50 day EMA
- RBI special announcement event with regards to Banking support done
We were cautious and went for a conservative strategy of selling Nifty 06 May expiry 14400 Put at 70
Nifty despite being down the strategy has yielded a profit to us
CMP 32
Option strategies may be less profitable per trade but if used properly it can increase your probability of more winning trades.
If today's closing is below the EMAs there is more likelihood of further downside
Positional Target for the current set up 14140 / 13800
Given the set up one may consider
selling Nifty 27 May 2021 expiry
15000 Call option
in the range of 140 - 160
cmp 144
Max profit potential at CMP Rs 10800/- per lot
Loss in strategy only if Nifty closes above 15144 on 27 May 2021
Be alert if Nifty closing is above 14720.
The strategy provides enough scope to adjust / exit with less damage if Nifty moves otherwise
Take care & safe trading...!!!
Disclaimer:
- The view expressed here is my personal view
- Past performance is not a guarantee for future predictions
- Use this for educational purpose
- Any decision you take, you need to take responsibility for the same
- It's your hard earned money. Treat it wisely
- Trade / Invest keeping in mind your trading style, goals and objectives, time horizon & risk tolerance
- if trading in F&O, understand that F&O trading involves risk
- Do take proper risk management measures
- Do your own analysis and consult your financial adviser if need be
CMP 14578
Last time when Nifty was at 14800 we felt that Nifty may not go below 50 day EMA
and felt it could be a buy on dips market.
- however currently Nifty is trading below 20 day & 50 day EMA
- RBI special announcement event with regards to Banking support done
We were cautious and went for a conservative strategy of selling Nifty 06 May expiry 14400 Put at 70
Nifty despite being down the strategy has yielded a profit to us
CMP 32
Option strategies may be less profitable per trade but if used properly it can increase your probability of more winning trades.
If today's closing is below the EMAs there is more likelihood of further downside
Positional Target for the current set up 14140 / 13800
Given the set up one may consider
selling Nifty 27 May 2021 expiry
15000 Call option
in the range of 140 - 160
cmp 144
Max profit potential at CMP Rs 10800/- per lot
Loss in strategy only if Nifty closes above 15144 on 27 May 2021
Be alert if Nifty closing is above 14720.
The strategy provides enough scope to adjust / exit with less damage if Nifty moves otherwise
Take care & safe trading...!!!
Disclaimer:
- The view expressed here is my personal view
- Past performance is not a guarantee for future predictions
- Use this for educational purpose
- Any decision you take, you need to take responsibility for the same
- It's your hard earned money. Treat it wisely
- Trade / Invest keeping in mind your trading style, goals and objectives, time horizon & risk tolerance
- if trading in F&O, understand that F&O trading involves risk
- Do take proper risk management measures
- Do your own analysis and consult your financial adviser if need be
Trade closed manually
Nifty had gone up, however the up movement was not supported by volumes. This made us suspect the quality of up movement. (I have mentioned in the comment section below). We were okay with seeing Nifty at even 15K and then decide on our next course of action.
During this up move phase, our strategy ensured we were in the game and although it was in loss it was very much in control.
Subsequently we saw Nifty moving down once again
Strategy update
Nifty 15000 Call option CMP 86 (suggested selling in the range of 140-160)
Now the strategy is very much in profit...(although Nifty is still 200 points above when we initiated the position). Thats the beauty of strategy....
We close the position
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