As of now, NIFTY is taking support at 4905. Typically day's range has been around 80 - 100 for the past few days. So, market could test the resistance level for the day at 4995. Following is the strategy to take advantage of that scenario.
BUY 1000 NIFTY SEP 5000 CE at 2.25
After buying, immediately place following sell orders
1) SELL 250 NIFTY SEP 5000 CE at 4.50
2) SELL 250 NIFTY SEP 5000 CE at 9.95
3) SELL 250 NIFTY SEP 5000 CE at 15.45
4) SELL 250 NIFTY SEP 500 CE at 19.95
Maximum loss Rs. 2250
Maximum profit Rs 10212
BUY 1000 NIFTY SEP 5000 CE at 2.25
After buying, immediately place following sell orders
1) SELL 250 NIFTY SEP 5000 CE at 4.50
2) SELL 250 NIFTY SEP 5000 CE at 9.95
3) SELL 250 NIFTY SEP 5000 CE at 15.45
4) SELL 250 NIFTY SEP 500 CE at 19.95
Maximum loss Rs. 2250
Maximum profit Rs 10212
One of those rare cases, where predictions come true!
ReplyDeleteOnly regret that I have is I haven't taken large enough positions.
On expiry day the risk reward is good on few options. Need more research on this....