iCharts Discussions

[rajmohanmbamhr]

This time RBI policy is along with expiry High volatility expected and time value of options minimum so by using both of these combination(lower time value+RBI policy) the following strategies possible

1.Low risk

Sell nifty Future + buy 5000 call option

Maximum Loss 17 points

Maximum Profit Unlimited if Market goes down

2.Low risk

Buy nifty Future + buy 5100 put option

maximum Loss 15 points

Maximum profit unlimited if market goes up

3.High Risk

Buy 5000 put + Buy 5100 call

Maximum Loss 42 points(entire premium paid if nifty closes between 5000-5100)

Note:
1.If purchase will be done after 3.15 pm today the Maximum Loss can be reduced further 3-6 points
Regards
Raj

[vinay28]

There is one more possibility but it should be exercised only after rbi policy is announced and preferably by late afternoon. if and only if nifty is close to 5000, buy 5000 CE. if there is any other posibility, I will post tmrw AN

[rajmohanmbamhr]

1. 17 POINTS LOSS
2. 40 POINTS PROFIT
3. 8 POINTS PROFIT (12.35PM)(MAXIMUM PROFIT 18 POINTS OR NEARLY 40% OF CAPITAL AT 12.22 PM)

Regards

Raj