Jun 1, 2012

Options Trading Report as on 01/06/2012


Extreme volatility will be seen in the month of June, Avoid buying stocks in cash. Don’t over trade.
There Are Big Event In The Month Of June. This Will bring Extreme Volatility In The Stock Market As Well As Commodity Market. There Are Election in Euro zone, Bail out Package may Be Given to some of the European Countries, And Should Be Implemented Properly. If Pigs, That Is Portuguese, Italy, and Greece and Spain, Get Out From Euro, Then Currency Euro Will Weaken Further And Will Lead To a Strong Dollar. And We All Are Aware About the Relation of Rupee and Dollar Term in India. Our Market Is Right Now Walking With Dollar Moment. Many times If Dollar Weak Then Market Strong And If Dollar Strong Then Market Weak. So In That Relation Our Market Will Be In Danger And We Can See The Levels Of 4600 To 4700 Around 20th Of June But Only When Pigs Are Put Of Euro zone Then Only.
While If Pigs Remain There in the Euro zone Then It may Lead to Give Little Effect on Dollar. It Will Not Crush Down But A Good Chance Is There That, It Will Weaken Further To The Level Of 48 To 50.And In That Scenario Out Stock Market Is Going To Go Up To The Levels Of 5200 To 5300 Levels. However markets are trading with high uncertainty and inefficiency in India, so traders have to be careful on both sides and ready to turn positions as per market rumors and news.
Trading strategy for nifty for first week of june :
Buy nifty call of strike price 5000 around 70 rs
Buy nifty call of strike price 5100 around 38 rs
Sell two nifty call of 4700 strike price around 250
Stop loss will be 4800 in cash basis
Reward for 5000 call 125 and 5100 call 75 and 4700 100 rs
Trading strategy for bank nifty for the first week of June :
Buy bank nifty call of 9700 strike price around 160
Buy bank nifty call of 9800 strike price around 130
Sell four call of bank nifty 9200 strike price around 400
Stop loss will be 9250
Reward will be for 9700 call 250 for 9800 call 200 and for 9200 call 150
Trading strategy: pair trade: buy tata motor sell hero motocorp:
These two stocks are very aggressive. We have seen that tata motors have been crush from 320 to 230 levels. And this stock is trying to make the base from this level and next target for tata motors is 250 levels and hero motocorp is not broken and we might see more selling in hero motocorp and target could be 1750. Pair trade is there, kind of hedging strategy. If both will go in one direction then even a chance to gain a little profit. tata motor is more volatile compare to hero which is actually not corrected. So hero can go down and we can see some unwinding take place in tata motor.
Buy tata motors around 233 sell hero motocorp 1800.
Stop loss for tata motor will be 225 and stop loss for hero motocorp will be 1850
Target for tata motor will be 250 and target for heromotocorp will be 1700

Bullish strategy: buy suzlon + jsw energy:  sell tata power + reliance power
We have seen a correction in suzlon from 25 to 17.5. We have seen a correction in jsw energy from 60 to 44. We have seen that tata power is incresed from 86 to 94 in week inspite of giving low result. And we have seen reliance power corrected further. Suzlon is changing its capital structure. While jsw energy is consolidating very much and going to go up to the levels of 55 in next move. While tata power may correct up to the levels of 88 and we may see reliance power goes further down to the levels of 85. So short future of tata power and r power and buy future of suzlon and jsw energy.
I could have suggested you to buy call and put. But these stocks are not actively traded in options so buy futures and sell futures.

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Posted on Friday, June 01, 2012 | Categories: