Nifty 16May Expiry Strategy

Nifty is on constant decline since last 8 trading sessions. Currently its trading near its 100 DEMA 11229. 200 DEMA 11023 will act as strong support. 11008 is also strong support on daily charts. So any option spread which has lower breakeven of below 11000 for 16th May expiry should be good enough to hold. 11000 may act as round figure support too.

I am neutral to mildly bullish till 16th May Expiry. So if you feel Nifty will expire above 10930 mark, then you can deploy below ratio spread which has 1.42%-4.23% ROI in 4 days.

+1x 16MAY2019 11200PE - ₹ 73
-5x 16MAY2019 11000PE - ₹ 31
Max. Profit 20100 Near 11000; ROI - 4.23%
Net 6150 Profit Above 11200; ROI - 1.42%
Max. Loss ₹ Undefined; Breakevens 0-10930.0;
Margin Required 4.75L;

Comment:

Comment: Disclaimer: Objective of this post is to educate and help all members earn profit from trading. I am not a SEBI registered analyst and strongly recommend people not to trade in NSE/BSE/MCX market basis above recommendations. All the stock picks are momentum picks chosen using technical indicators and for education purpose only. I am not responsible for profit and losses or SEBI audits arising out of the above calls. Stock market trading and investment is subject to market risks. Contact your financial advisor before taking trades or trade at your own risk.

Comment:

You can track the payoff graph and live performance of the above spread using the below link.

opstra.definedge.com...44363dcfd416ca7fa320

Comment:

Gave good 6.3k profit more than 1% ROI