Fear
of Fed winding down bond buying program sets panic in the market
BSE Sensex
(18598.18) and Nifty (5507.85) closed down
by 1.01 % and 1 % respectively last week.Nifty Future
August was quoting at 0.15 points premium.Nifty Put option August 5500 was very active.Support for Sensex is at 18300.Resistance for Sensex is at 18850. Support
for Nifty is at 5420 and resistance at 5585.
HEROMOTORCO and ITC added Open Interest in AUGUST series.Huge
position was build up at ULTRACEMCO
AUGUST PUT Option Strike Price 1650.Good build up was also seen at TITAN August PUT Option Strike Price 220.
Strategy for Futures Option players.
(1) IDEA
(171.85) lot size 2000 shares
Buy One Call Option of AUGUST Strike Price 170@7.00 Rs
Sell One Call Option of AUGUST Strike
Price 180@ 2.50 Rs.
Premium .Paid= 7*2000 = 14000.00 Rs.
Premium Received= 2.5*2000 = 5000.00 Rs.
Net Premium Paid= 14000 – 5000 = 9000.00
Rs.
Maximum Profit= 180-170= 10*2000 = 20000 –
9000= 11000.00 Rs.
Maximum Loss=
9000.00 Rs.
Break Even = 174.50
(2) TATA MOTORS (314.80) Future-Lot Size 1000 shares.
Buy One Lot AUGUST Future
@ 416.45 Rs
Sell One Call Option of AUGUST Strike Price 320@ 7.00 Rs.
Premium Received= 7*1000 = 7000.00 Rs
Maximum Profit= 320-314.80 = 5.20*1000 =
5200.00 + 7000.00 = 12200.00 Rs.
Max Loss=Unlimited.
Trading Idea
(1) CAIRN (301.30) Buy this stock in
decline and trade
.
(2) DABUR (170.10) Buy this stock in decline and trade
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