Tuesday, August 26, 2014

Buy Sep 2014 7900 Call and Put

Buy Sep 2014  7900 Call and Put
One more trade Idea  for me
Sep 7900 call and put are trading at total cost of Rs. 226 (Call at Rs. 135 and put at Rs 91.30)
idea is to buy both
Technically it is called Straddle
Breakout will be above  8126  and below 7674 if held till expiry.
But I will hold this straddle with stop loss of Rs 190.
Means maximum loss of Rs 36 .
Nifty for last 12 months have given atleast 300 points between high and low.
Now markets are tentatively poised.
Vix is at  13.90.
it tops after 33 and bottoms below 13.
So I expect volatility to increase in coming month
Either a rally or sharp correction is expected.
Idea is to buy straddle only during closing of August 27th or first half of August 28th.
lets see how the trade pan out
Happy Investing


No comments:

Post a Comment

Search This Blog