FOMC holds monetary policy meet on 28 and 29 January 2014.
BSE Sensex (20851.33) and NSE Nifty(6211.15) closed down by 1.5% and 1.51% respectively last week.Nifty Future January was quoting at 47.25 points premium.Nifty put option January 6200 was very active.Support for Sensex is at 20630 and Nifty at 6140. Resistance for Sensex is at 21230 and Nifty at 6320.
Ashok Leyland and DLF added Open Interest in January series.Huge position was build up at Ashok Leyland January Call Option Strike Price 22.50.Good build up was also seen at IFCI January Call Option Strike Price 27.50.
Strategy for Futures Option players.
(1) Ashok Leyland (18.90) lot size 15000 shares
Buy One Call Option of January Strike Price email@example.com Rs
Sell One Call Option of January Strike Price 22.50@ 0.30 Rs.
Premium .Paid= 0.8*15000 = 12000.00 Rs.
Premium Received= 0.3*15000= 4500.00 Rs.
Net Premium Paid=12000-4500= 7500.00 Rs.
Maximum Profit==22.50-20 =2.50*15000=37500-7500 = 30000.00 Rs.-
Maximum Loss= 7500.00 Rs..
Break Even = 20.50
(2) Power Grid (101.20) Future-Lot Size 4000 shares.
Buy One Lot January Future @101.20 Rs
Sell One Call Option of January Strike Price 105@ Rs.1.05
Premium Received=1.05*4000= 4200.00 Rs
Maximum Profit=105-101.20 = 3.80*4000 = 15200 + 4200= 19400.00 Rs.
(1) TCS(2222.20) Buy this stock in decline and trade .
(2) ARVIND(144.60) Buy this stock in decline and trade
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