Union Budget 2013-14 to be presented to the Parliament on Thursday, 28 February 2013.

BSE Sensex (19317.01)   and Nifty (5850.30) closed  down 0.8% and 0.6% last week.Nifty Future February was quoting at  6.50  points premium.Support for Sensex is at 19150 and resistance at 19450.Support for the Nifty is at 5810 and resistance at 5880.Nifty call option February  5900 was very active.

DLF  and  SBI added Open Interest in February  series.Huge position was build up at  ICICI BANK  February  Call Option Strike Price 1100.Good build up was also seen at  DLF February Call Option Strike Price 280.

Strategy  for Futures Option players.                                                                 

(1) SBI (2196) lot size 125 shares                                                                                                                                                                                                                         

Buy One Call Option of  February Strike Price 2200@ 38.25 Rs

Sell One Call Option of  February Strike Price 2250@ 20.10 Rs.

Premium .Paid = 38.25*125 = 4781.25 Rs.

Premium Received= 20.10*125 = 2512.50 Rs.

Net Premium Paid =4781.25-2512.50 = 2268.75 Rs.

Maximum Profit =2250-2200 = 50*125 = 6250 – 2268.75 = 3981.25 Rs.-

 Maximum Loss =  2268.75 Rs.

Break Even = 2218.15 Rs.

(2) AXIS BANK (1414.05)  Future-Lot Size 250 shares                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        

Buy One Lot    February Future  @ 1414.05 Rs

Sell One Call Option of  February Strike Price 1450@ 11.05 Rs.

Premium Received= 11.05*250 = 2762.50  Rs

Maximum Profit= 1450 – 1414.05 = 35.95*250 =.8987.50 + 2762.50 = 11750.00 Rs.

Max Loss=Unlimited.

           

Trading Idea

(1) ICICI BANK (1192.55) Buy this stock in decline and trade                                                                                                                                                                                                                                .

(2) RELIANCE INDUSTRIES (862.60) Buy this stock in decline and trade

 

 

 




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