neneram

Nifty - Planned risk strategy till FEB expiry

Long
NSE:NIFTY   Nifty 50 Index
Hello All ,
What is Risk : Its something unknown and that causes trouble .
What if plan the risk i.e it becomes a known factor ? Will it become workable ? Correct , Right

Following is strategy till expiry

No Naked put /call buy /sell (Screaming it again,Options are expensive because of high volatility )

1) Buy 10500 MARCH Nifty put @205
2) Sell 10500 FEB Nifty put @ 110

scenario Nifty expiry
1) Expiry at 10500 march option loss max 25 point , feb expiry profit 100 point net profit 75 point
2) Expiry at 10400 march option profit 40-50 point , feb expiry 0 point net profit 40-50 point
3) Expiry at 10300 march option profit 120-130 point , feb expiry loss 100 point net profit 20-30 point
4) Expiry at 10200 march option profit 160-170 point , feb expiry loss 200 point - net loss 30 / 40 point

so we have planned risk of 30 / 40 points and not unlimited/unknown risk .

Take 1 or 2 lots depending on ur risk appetite , No over leverage and buy 10 lots,
You need minimum 2 lakh capital for 2 lots.

Consult your financial adviser before taking trade , options are risky


P.S :- 10300 look like strong support , breaking it will need some efforts next Month , Not this month.
Comment: looks Like 3 scenario in play , We are marking 5-6 points loss and thats the caluclated risk we took .
Best is to book out and stay aside, Looking for new opportunity
Trade closed manually: Exit folks , Exit.
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