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 –
In case you want to visualize this, use this calculator.
I will make the loss if NIFTY breaks 9956.
- 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.