Option Strategy before budget & quarterly result.Auro Pharma has announced 07.02.18 for results and the budget is on 01.02.18 so one can avoid the risk of volatility. The price has already moved down by 10% in last month. In this situation one can try the following strategy :
2/1 ratio call spread and put spread:
a. Buy 660 call 2 lots 14 to 17 range (Current-Price 15.20)
b. Sell 640 call 1 lot 21 to 26 range (Current-Price 22.30)
c. Buy 600 put 2 lots 14 to 17 range (Current-Price 15.15)
d. Sell 620 put 1 lot 21 to 26 range (Current-Price 22.65)
Max loss In the range of 2700 to 7500 if price consolidate 660 to 600 band post result
Profit 11000 to 18000 if price move above 706 or 555 post result
One should hold it for 10 working days or post result
Options
BANKNIFTY: FUT+ Spot, At a Glance for Trade Date 28th Aug 2017.All plotted & mentioned on chart.
BANKNIFTY' FUT: Trade Set UP for Trade Date 28th Aug 2017.
Possible LONG above @ 24375
TGT: @ 24403, @ 24448 - @ 24481 (HZ), @ 24519, @ 24566+
Possible SHORT Below @ 24284
TGT: @ 24256, @ 24212 - @ 24179 (BZ), @ 24140, @ 24094-
Some ITM' / ATM / OTM Call Option premiums compare to FUT level.
drive.google.com
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Disclaimer: Only For STUDY. For Taking Trade Decision Consult Financial Advisor.
IDEA - Strangle Option StrategyCMP - 100
This is a direction-neutral strategy. I used it previously too. ( see in related idea )
Here I am buying,
95 PE - 3.5
105 CE - 3.5
Why ? Because it has moved a lot and I am expecting it to move further.
Caution : Experts do due diligence. New traders can look into this and paper-trade.
Trading Farmers ! Bollocks.. Bollocks.. & More Bollocks...!!!Hi Guys,
Its time already to post for Nifty but I'm still typing the content here, Sorry for the delay. Today we got 3 points to discuss, (i) Nifty analysis (ii) Farmer's who Trade (iii) Corporate News events & how they hustle your money !
(i) Nifty analysis :
Actually I expected Nifty to move in channel shown above but it gapped up. Anyway, being expiry day I'm more in favor of range with post-lunch session with volatility due to expiry, But taking out 8820's or below support zone - the chances are lesser. Probably if we get pullback around 8780's & on bullish reversal we can go long in Nifty vice-versa for Shorting Nifty @ 8820's, always go with stops as per your plan only after valid confirmation. If nothing happens take a day off n B relaxed !
(ii) Farmer's who Trade :
Surprised ?? Don't be surprised, our farmers are trading according to NCDEX (Md)... To take My point further I quote part of an article from Business standard "Mcx introduces options trading" -
" Samir Shah, managing director and chief executive officer, National Commodity and Derivatives Exchange said, “For farmers, it will be a game changer. It would help them sell their produce in the derivatives market and, thereby, get the benefit of price protection in case price falls below their cost of production and also derive benefit of any rise. Options are also a much better hedging instrument compared to futures." To be honest, those guys edited the article by midnight, actually when I read last evening it was" Farmers can use options, so they can protect their crops. But for options we need risk-takers, so hedge-funds / institutions will accept that risk, protecting the farmers ". Unfortunately they edited article by midnight so you guys cudn't read that.
Wow... How sweet ? Corporates/ Sebi board members do have Big heart n helping tendency to protect our farmers. They take the risk, so farmers will be protected. You know its middlemen n big guys who make real money.
We are from great country, where our farmer's know how to trade in stock market, that too in options by understanding Greeks behind options - you know our farmers are Intellectuals so they know option Greeks as if its like irrigating farms. Our farmers are literates who operates computers.
I'm very much annoyed & angered by the comments made by board member & irresponsible publication, Here Our very own farmers are dying in Vidarbha (Maharastra), & here down south cauvery is drying n Farmers livelihood is questionmark. And these Board members are making irresponsible statements about farmers. Same as politicians who do politics over essential water n burn buses for cauvery disrupting public life. No farmer burnt bus or involved in violence, Our farmer is struggling for daily meal, then how he can protest ?? Politicians disguise as farmers n do atrocity for votes, Corporate's/Board members in name of helping farmers planning to make money. Ashamed by those senseless people.
Note : I have no interest in politics & the board member could have simply told - we are introducing options in Mcx also.