FOMC meet on 18-19 March 21014
BSE Sensex
(21919.79) and NSE Nifty(6526.65) closed up by 3.8% and 4% respectively last week.Nifty Future March was quoting at 23.05
points premium.Nifty call option March 6500 was very active.Support for Sensex is at 21250 and Nifty at 6310. Resistance for
Sensex is at 22640 and Nifty at 6740.
HINDALCO and JPASSOCIAT added Open Interest in March series.Huge position
was build up at JPASSOCIAT March
Call Option Strike Price 55.Good build up was also seen at BHEL March Call Option Strike Price 185.
Strategy for Futures Option players.
(1) MARUTI (1746.80) Future-Lot Size 250 shares.
Buy One Lot MARCH Future
@1746.80 Rs
Sell One Call Option of MARCH Strike Price 1800@
Rs.24.90
Premium Received=24.90*250= 6225.00 Rs
Maximum Profit=1800- 1746.80 = 53.20*250=
13300 + 6225 = 19525.00 Rs.
Max Loss=Unlimited.
(2) BANK INDIA (190.75) LOT SIZE 2000
shares
Buy One Call Option of MARCH Strike Price 190@7.90 Rs.
Sell One Call Option of MARCH Strike Price 200@4.30
Rs.
Premium Paid = 7.90*2000= 15800.00 Rs.
Premium Received=4.30*2000=8600.00 Rs.
Net Premium Paid= 15800-8600=7200.00 Rs.
Maximum Profit = 200-190= 10*200= 20000.00
– 7200.00=12800.00 Rs.
Maximum Loss= 7200.00 Rs.
Break Even= 193.60
Trading Idea
(1) COLPAL (1336.60) Buy this stock in
decline and trade
.
(2) RELIANCE IND. (869.40) Buy this stock
in decline and trade
By
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