Market may remain volatile due to F&O expiry

BSE Sensex (19242)   and Nifty (5847.70) closed  down  by 0.4% and 0.5% respectively last week.Nifty Future December was quoting at  3.5  points premium.Nifty call option December  5900 was very active.Support for Sensex is at  19100. Resistance for Sensex is at 19450. Support for Nifty is at 5800 and resistance at 5910.

 Market remains closed on 25^th December because of  Christmas.

SBI  and  TATA STEEL  added Open Interest in December  series.Huge position was build up at  SBI  December  Call Option Strike Price 2400.Good build up was also seen at  TATA STEEL  December Call Option Strike Price 440.

Strategy  for Futures Option players.                                                                 

(1) TCS (1258.70) lot size 250 shares                                                                                                                                                                                                                         

Buy One Call Option of  January Strike Price 1250@ 51.95 Rs

Sell One Call Option of  January Strike Price 1300@ 28 Rs.

Premium .Paid = 51.95*250= 12987.500 Rs.

Premium Received= 28*250=  7000.00 Rs.

Net Premium Paid =12987.50-7000= 5987.50 Rs.

Maximum Profit =1300-1250 = 50*250 = 12500 – 5987.50 =6512.50Rs.-

 Maximum Loss =  5987.50 Rs.

Break Even = 1273.95

(2) WIPRO (382.15)   Future-Lot Size 1000 shares.

Buy One Lot   January  Future  @ 382.15 Rs

Sell One Call Option of  January Strike Price 400@ Rs.6

Premium Received= 6*1000 = 6000  Rs

Maximum Profit= 400- 382.15 = 17.85*1000 =.17850 + 6000 = 23850.00 Rs.

Max Loss=Unlimited.

           

Trading Idea

(1) HDFC BANK (676) Buy this stock in decline and trade                                                                                                                                                                                                                                .

(2) CESC (309.40) Buy this stock in decline and trade

 

By 

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