NSE NIFTY & BSE SENSEX (INDICES) FUTURE OPTION ANALYSIS

Futures trading on the National Stock Exchange's (NSE) volatility index -- India VIX -- begins from 26 February 2014

BSE Sensex (20700.75)  and NSE Nifty(6155.45) closed  up  by 1.6% and 1.8% respectively  last week.Nifty Future February was quoting at  5.55  points premium.Nifty call option February  6100 was very active.Support for Sensex is at  20440 and Nifty at 6095. Resistance for Sensex is at 21000 and Nifty at 6220.

LT  and  TATA MOTORS  added Open Interest in March  series.Huge position was build up at  RCOM  February  Put Option Strike Price 110.Good build up was also seen at  DISH TV  February Call Option Strike Price 52.50.

Strategy  for Futures Option players.                                                               

(1) INDIA CEMENT (55)   Future-Lot Size 8000 shares.

Buy One Lot   MARCH  Future  @55 Rs

Sell One Call Option of  MARCH  Strike Price 55@ Rs.2.20

Premium Received=2.2*8000= 17600.00 Rs

Maximum Profit=55-55 = 0 + 17600 =17600.00 Rs.

Max Loss=Unlimited.

(2) ACC (1065.55) LOT SIZE 250 shares

Buy One Call Option of  MARCH Strike Price 1060@31.00 Rs.

Sell One Call Option of MARCH Strike Price 1080@22.95 Rs.

Premium Paid = 31*250= 7750.00 Rs.

Premium Received=22.95*250=5737.50 Rs.

Net Premium Paid= 7750-5737.50=2012.50 Rs.

Maximum Profit = 1080-1060= 20*250= 5000.00 – 2012.50=2987.50 Rs.

Maximum Loss= 2012.50 Rs.

Break Even= 1068.05

           

Trading Idea

(1) AXIS BANK (1193.35) Buy this stock in decline and trade                                                                                                                                                                                                                                .

(2) LT(1055.15) Buy this stock in decline and trade

 

By 

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