Interim budget will be presented in the parliament by finance minister on 17 February 2014
BSE Sensex
(20376.56) and NSE Nifty(6063.20) closed down by 0.7% and 0.4% respectively last week.Nifty Future February was quoting at 15
points premium.Nifty put option February 6000 was very active.Support for Sensex is at 20100 and Nifty at 6000. Resistance for
Sensex is at 20580 and Nifty at 6120.
TATA STEEL and TATA MOTORS added Open Interest in February series.Huge position
was build up at TATA STEEL February
Call Option Strike Price 370.Good build up was also seen at TATA MOTORS February Call Option Strike Price 400.
Strategy for Futures Option players.
(1) IOC(244.55) Future-Lot Size 1000 shares.
Buy One Lot FEBRUARY Future
@244.55 Rs
Sell One Call Option of FEBRUARY Strike Price 250@ Rs.7.75
Premium Received=7.75*1000= 7750.00 Rs
Maximum Profit=250-244.55 = 5.45*1000 = 5450
+ 7750=13200.00 Rs.
Max Loss=Unlimited.
(2) NTPC(135.95) LOT SIZE 2000 shares
Buy One Call Option of February Strike
Price 135@3.20 Rs.
Sell One Call Option of February Strike
Price 140@1.30 Rs.
Premium Paid = 3.2*2000= 6400.00 Rs.
Premium Received=1.3*2000=2600.00 Rs.
Net Premium Paid= 6400-2600=3800.00 Rs.
Maximum Profit = 140-135= 5*2000= 10000.00
– 3800.00=6200.00Rs.
Maximum Loss=3800
Break Even= 136.90
Trading Idea
(1) TITAN (225.70) Buy this stock in
decline and trade
.
(2) CAIRN(334.05) Buy this stock in decline
and trade
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