Trade Setups

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

By October 8, 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.
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