It is time to implement our strategy for this month. Our decision to wait till the budget event to get over has really paid well. Now the market is at least 5% above the budget levels.
Before discussing this month strategy here is my post which describes our option strategy
This month I am following a staggered approach when you will only sell options which are worth half of your margin money. Since I am slightly bullish on the market I expect to sell rest of the options as the market goes up from here.
Sell the following call options
March 5200 Call Option at 50Rs – 6x lots
March 5300 call Option at 19Rs – 4x lots (this is optional I had some margin left so I sold this one)
April 5300 Call Option at 74Rs – 6x lots
April 5400 call Option at 45Rs – 10x lots
May 5100 Call Option at 210Rs – 2x Lots
This time the premium is slightly low as most of the market men expect a correction (which is another reason why the market goes up)
Tomorrow if the market is up then i plan to deploy another 20% of the margin money by selling higher call options. however if the market goes down then i would wait and just watch these options decay :-)
Monday, March 8, 2010
Option Strategy March 2010
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2 comments:
Reliance will be the key to hold market upward....may go 50 to 60+ will not surprice if IT sector help market to go above 5200+
Yes that is correct. In my case that 5200 Call is the riskier one. I have taken that risk because i am having a feeling that the market has risen too fast.
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