Trade Setups

What’s your opinion of the next move of Nifty 50 in this expiry?

By October 8, 2018 October 9th, 2018 No Comments

Here is my position this week which I shared on Slack pre-RBI moment-

Sell 2 lot 10200 PE at 103
Buy 1 lot 10400 PE at 147
Here goes the payoff graph –

nifty option

In case you want to visualize this, use this calculator.

I will make the loss if NIFTY breaks 9956.

View –

  • Selling 2 lot 10200 PE and Buying 1 lot 10400 PE doesn’t mean we’re bearish or we’re bullish.
  • The view is – I strongly believe seeing the short positions coming from FII section that 10000 should crack once like it did last time and the Market will rebound.
  • So instead of 10000 PE, I took this position because
    • If it really does – for a brief moment we will be in profit enough to be able to exit the position.
    • If it doesn’t – We will be in profit anyways.
  • The chance of making loss lies if there is a gap down below the point of 9956 which is highly unlikely.