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
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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
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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.