Date: 03/07/2014 Share Name: Nifty CMP: 7730
Strategy: Combo of Bull Call Spread and Bear Put Spread.
a) Buy 1 lot of 7900 Call of Nifty of July Expiry for around Rs. 82.
b) Sell 1 lot of 8100 Call of Nifty of July Expiry for around Rs. 31.
a) Buy 1 lot of 7600 Put of Nifty of July Expiry for around Rs. 87.
b) Sell 1 lot of 7400 Put of Nifty of July Expiry for around Rs. 40.
Profit Target: Rs. 4.000 Stop Loss: Rs. 1,800 (Both in absolute term.)
Reason: India Vix is hovering around 18 which means Nifty is expected to make move of around 5% at the end of this expiry. If at the last day of expiry, Nifty closes at above 8100 or below 7400 then this strategy will make the maximum profit of Rs. 5000.
Strategy: Combo of Bull Call Spread and Bear Put Spread.
a) Buy 1 lot of 7900 Call of Nifty of July Expiry for around Rs. 82.
b) Sell 1 lot of 8100 Call of Nifty of July Expiry for around Rs. 31.
a) Buy 1 lot of 7600 Put of Nifty of July Expiry for around Rs. 87.
b) Sell 1 lot of 7400 Put of Nifty of July Expiry for around Rs. 40.
Profit Target: Rs. 4.000 Stop Loss: Rs. 1,800 (Both in absolute term.)
Reason: India Vix is hovering around 18 which means Nifty is expected to make move of around 5% at the end of this expiry. If at the last day of expiry, Nifty closes at above 8100 or below 7400 then this strategy will make the maximum profit of Rs. 5000.