BSE Sensex (19286.72) and Nifty (5871.45) closed up by 1.4% and 1.5% respectively last week.Nifty Future May was quoting at 17.55 points premium.Nifty put option May 5800 was very active.Support for Sensex is at 19000.Resistance for Sensex is at 19500. Support for Nifty is at 5790 and resistance at 5940.
Market remains closed on 1 May 2013 because of Maharashtra Day.
IDEA and TATA MOTORS added Open Interest in May series.Huge position was build up at ICICI BANK May Call Option Strike Price 1200.Good build up was also seen at MARUTI Call May Option Strike Price 1700.
Strategy for Futures Option players.
(1) LIC HOUSING (247.85) lot size 1000 shares
Buy One Call Option of MAY Strike Price firstname.lastname@example.org Rs
Sell One Call Option of MAY Strike Price email@example.com Rs.
Premium .Paid= 9.85*1000=9850.00 Rs.
Premium Received= 5.60*1000= 5600.00 Rs.
Net Premium Paid=9850-5600= 4250.00 Rs.
Maximum Profit==260-250=10*1000=10000-4250= 5750.00 Rs.-
Maximum Loss= 4250.00 Rs.
Break Even = 254.25
(2) TATA MOTORS (298.80) Future-Lot Size 1000 shares.
Buy One Lot MAY Future @298.80 Rs
Sell One Call Option of MAY Strike Price 310@ Rs.7.60
Premium Received=7.60*1000= 7600.00 Rs
Maximum Profit=310-298.80 = 11.20*1000= 11200.00 + 7600.00=18800.00 Rs.
(1) IDEA (123.15) this stock in decline and trade .
(2) LT (1540.85) Buy this stock in decline and trade