Hi,
Nifty is around 6063. 6090 is immediate resistance so it can go or up from then as it goes tomorrow.
NMDC:
NMDC is on verge of breakout and tomorrow is also its date for quarterly result. It has been known to shift wildly around its result. This looks like a good situation for doing a long straddle in options.
For those who don't know straddle is buying both put and call of "At the money" options.
One can buy NMDC 145 put and calls tomorrow.
Or 150 call or 140 put if sure that it will definitely explode more than 10 percent in two three days. It is called long strangle strategy.
Or one can do a mix type of thing with 145 call and 140 put because 140 put is cheap and its Implied volatility is around 50% compared to of 145 put which is around 62% and it also not cheap. Also it should factor that it is more liable to go down than go up.
Straddle provides a kind of safety in either direction.
Nifty is around 6063. 6090 is immediate resistance so it can go or up from then as it goes tomorrow.
NMDC:
NMDC is on verge of breakout and tomorrow is also its date for quarterly result. It has been known to shift wildly around its result. This looks like a good situation for doing a long straddle in options.
For those who don't know straddle is buying both put and call of "At the money" options.
One can buy NMDC 145 put and calls tomorrow.
Or 150 call or 140 put if sure that it will definitely explode more than 10 percent in two three days. It is called long strangle strategy.
Or one can do a mix type of thing with 145 call and 140 put because 140 put is cheap and its Implied volatility is around 50% compared to of 145 put which is around 62% and it also not cheap. Also it should factor that it is more liable to go down than go up.
Straddle provides a kind of safety in either direction.
interim dividend dene wali hai 155-160 jayega yeah
ReplyDeleteHan 6 rs around divident hai shayad. Is bar straddle try karta hun. Lets see how it goes.
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