BSE Sensex (16213.46) and Nifty (4866.70) closed down 3.8 % and 3.6% respectively last week.Nifty Future December was quoting at 14.45 points premium.Nifty call option December 5000 was very active.Support for Sensex is at 15900. Resistance for Sensex is at 16450 .Support for Nifty is at 4770 and resistance at 4940.
The third advance tax installment for corporate is due on 15 December 2011.
SBI and Hindalco added Open Interest in December series.Huge position was build up at SBI December Call Option Strike Price 1900.Good build up was also seen at Hindalco December Call Option Strike Price 130.
Strategy for Futures Option players.
1)SBI(1865.55) Lot Size-125 Shares
Buy One Call Option of December Strike Price 1850@77 Rs
Sell One Call Option of December Strike Price 1900.00@52.40 Rs.
Premium .Paid=77*125=9625.00 Rs.
Premium Received=52.4*125= 6550.00 Rs.
Net Premium Paid=9625.00-655.00=3075.00 Rs.
Maximum Profit==1900-1850 =50*125=6250-3075=3175.00 Rs.-
Maximum Loss= 3075.00 Rs.
Break Even Price=1874.60
2)Vijaya Bank(54.50) Future-Lot Size 4000 shares.
Buy One Lot December Future @54.50 Rs
Sell One Call Option of December Strike Price 55@1.65 Rs.
Premium Received=1.65*4000=6600.00 Rs
Maximum Profit=55-54.50==2000.00 + 6600.00=8600.00 Rs.
Max Loss=Unlimited.
Trading Idea
1)IOC(270.10) Buy this stock in decline and trade .
2)HIND PETRO(294.65) Buy this stock in decline and trade
Website www.subscriptionnarendranainani.blogspot.com
No comments:
Post a Comment