market may remain choppy ahead of Union Budget

BSE Sensex (19468.15)   and Nifty (5887.40) closed  last week.Nifty Future February was quoting at  5.25  points premium.Nifty call option February  5900 was very active.

TATA MOTORS  and  SBI added Open Interest in February  series.Huge position was build up at  SBI February  Call Option Strike Price 2300.Good build up was also seen at  TATA MOTORS February Call Option Strike Price 300.

Strategy  for Futures Option players.                                                                 

(1) DLF (248.70) lot size 1000 shares                                                                                                                                                                                                                         

Buy One Call Option of  February Strike Price 250@ 7.05 Rs

Sell One Call Option of  February Strike Price 260@ 3.45 Rs.

Premium .Paid = 7.05*1000= 7050.00 Rs.

Premium Received= 3.45*1000=  3450.00 Rs.

Net Premium Paid =7050-3450= 3600.00 Rs.

Maximum Profit =260-250 = 10*1000 = 10000 – 3600 = 6400.00 Rs.-

 Maximum Loss =  3600.00 Rs.

Break Even = 253.60 Rs.

(2) SBI (2244.20)  Future-Lot Size 125                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            shares.

Buy One Lot    February Future  @ 2244.20 Rs

Sell One Call Option of  February Strike Price 2300@ 24.25 Rs.

Premium Received= 24.25*125 = 3031.25  Rs

Maximum Profit= 2300- 2244.20 = 55.80*125 =.6975 + 3031.25 = 10006.25 Rs.

Max Loss=Unlimited.

           

Trading Idea

(1) AXIS BANK (1449.30) Buy this stock in decline and trade                                                                                                                                                                                                                                .

(2) TATA MOTORS (304.45) Buy this stock in decline and trade

 

By 

Bullet Advisory.

Traders trade with us.

Funds follow us.

Globe track us.

What are you waiting for?

Join us.

Bullet Advisory.

Narendra Nainani

Mobile No. +919898162770      

      

Website www.subscriptionnarendranainani.blogspot.com