May 28, 2012

Options Trading Report as on 26/05/2012


Extreme volatility will be seen in expiry week, nifty will trade with flat to positive sentiment for the week closing.
In last week we mentioned that nifty will trade with positive bias and will increase for the levels of 4900. And it has actually crossed that. It was a game of rupee dollar term. But for the next week we are having expiry. And no big moments is going to see. There will be flat to positive sentiment are going to seen. Investors have a chance to cut there long position in the next week. June month will be very bearish for the market if euro zone doesn’t get good scenario. If you still want to trade then trade very carefully with strict stop loss
Trading strategy for NIFTY:
Buy nifty call of strike price 5000 at 21
Sell nifty put of strike price at 4800 at 14
Stop loss will be 4820,
Profit will start as soon as nifty crosses 4950 level in futures and if nifty reaches 5050 maximum profit could be double of your investments.
Trading strategy for bank nifty:-
 To increase the nifty bank nifty has to play a very big role. So in this regard we may assume some kind of positive sentiment for bank nifty
Buy bank nifty call of 9800 strike price at 16
Sell bank nifty put of 9200 strike price at 45
Stop loss 9100
Good chance of making profit.
Pair trade: sell HPCL and buy OIL INDIA futures at current market price:
As we are seeing government is pressuring very hard for petroleum companies we might see decline in the prices of petrol as well as in the price of stock but we might see good price discovery in the price of oil India
Short hpcl at 300 and buy oil India future at 450
Stop loss not requires. Less risky strategy.
Buy tata power futures and jsw energy futures.
As such both stocks are very strong. But there is very low liquidity in the options of both of the stocks. So trading in call and put is not recommended. But investors can buy futures of both of the stock for having food gain. No need to put any stop loss
Buy tata power at  89 for the price target of 97 and stop loss 94
Target of jsw energy 44 for week. Target of 49 and stop loss of 42

                                 Performance of the last week call
Nifty call and nifty put prices are rocking with very low investment
Bank nifty call and put prices are also rocking with very low investment


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Posted on Monday, May 28, 2012 | Categories: