indiamarketoutlook

Nifty May 06, 2021 Expiry strategy

NSE:NIFTY   Nifty 50 Index
Nifty
CMP 14801

- Nifty has 20 day and 50 day EMA support around 14620-14650

- Resistance around recent high of 15044

Given the set up

One may consider a Short strangle strategy for 06 May expiry

Sell Nifty
14600 Put option around 100
15000 Call option around 82

Max profit potential in strategy Rs 13650 (approximately 8% on Margin requirement)

Loss in strategy only if Nifty closes below 14418 or above 15182 on 06 May 2021

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 active:
Nifty CMP 14711 (Nifty is down by 90 points from the time idea was posted)

Strategy update
14600 Put option cmp 114 ( reco sell at 100)
15000 Call optoin cmp 51 ( reco sell at 82)


Net (100+82) - (114+51) = 182 - 165 = 17 points

Strategy is net profitable by Rs 1275/- per lot (17 points * 75 ) so far

Happy trading...!!!
Trade closed manually: https://s3.tradingview.com/snapshots/5/5...

Nifty is down to 14552.
Nifty is currently trading below the 20 day and 50 day EMA and down more than 250 points from where we initiated the trade....

This is where strategies come in handy as they work their magic around.

Our Strategy update

Nifty 14600 Put CMP 162 ( reco short at 100)
Nifty 1500 Call CMP 16 (reco sell at 82)

P&L in strategy

75* (182-178) = Rs 300

The strategy kept us in the game and we are exiting with some profits in the trade...

Happy & safe trading...!!!