Nifty strategy in this volatile market

Nifty
CMP 7765

Nifty has been very volatile and it has been swinging 500 points just like that....

What use to take months now is happening in a couple of hours...

So what can one do in such situation

Option 1 is stay away from market

Option 2

Trade with more focus on risk management.


For the current market conditions

One may consider the following strategy

Sell Nifty Put Option

Lot Size:75

Expiry: 30 April 2020

Strike Price: 6100

CMP 250



Any price above 6100 in Nifty on 30 April 2020 can yield a
Maximum profit potential of Rs 18750/- (Profit potential of approximately 30% on margin ) per lot

Loss in strategy only if Nifty closes below 5870 on 30 April 2020

That is a good 1800 points protection (in simple words in built Protection against loss of Rs 135000/-)

Take care & safe trading...!!!


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Comment:

Update on the strategy

Nifty 6100 Put option 30 April expiry

It Opened at 248, made a high of 251

CMP 170

That's 80 points for the taking. In other words Profit of Rs 6000 per lot so far...

Nice way to start a New Year....😀
Wish u all a very happy Gudi Padwa...!!!

Stay at home, stay blessed, and make the most of it...

Take care and enjoy your day....!!!

Comment:

Update on strategy
CMP 87

The strategy is currently yielding a profit of Rs 12225 per lot.....

Consider booking profits in partial or in full as per your risk appetite.

Enjoy and have a great weekend..!! 😀

Trade closed manually