Tuesday, June 3, 2008
Read parent blog here 
Today the Nifty June 2009 expiry, 4700 strike Put option is available for ready trade at 542 i.e. the cash inflow of approx Rs. 27,000 and the Cash outflow for marginwould be around Rs. 32000 as the market is trading at around 4660. Thus, for Rs. 5,000 you can open a position. Right now a buyer for 1000 shares or 20 lots is available at 542 as shown. So if you write 5 nifty put options, your outflow is Rs. 25,000 and the potential upside can be Rs. 135,000 (if u wait till June 2009). I would recommend to write 5 options and add another 5 if the market fall more tomorrow. So just keep some cushion of around Rs. 5,000 for current 5 lots or Rs. 25,000 if the market falls to 4600.
Today the Nifty June 2009 expiry, 4700 strike Put option is available for ready trade at 542 i.e. the cash inflow of approx Rs. 27,000 and the Cash outflow for marginwould be around Rs. 32000 as the market is trading at around 4660. Thus, for Rs. 5,000 you can open a position. Right now a buyer for 1000 shares or 20 lots is available at 542 as shown. So if you write 5 nifty put options, your outflow is Rs. 25,000 and the potential upside can be Rs. 135,000 (if u wait till June 2009). I would recommend to write 5 options and add another 5 if the market fall more tomorrow. So just keep some cushion of around Rs. 5,000 for current 5 lots or Rs. 25,000 if the market falls to 4600.
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1 comments:
gr8 man, very well researched and informative post, post sumthing abt equity n short sellin
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