Sep 09 Option premiums are at a premium.While premiums will drop post settlement, the spread risk -reward ratios may actually be better now than 4 secession down the week.
Therefore I would try to execute the following trades this week (keep an eye on any upmove intraday ) --
Short sell 4900 call at the range of 100+ (Now it is @ 77)
Aprox margin money req - 16000/-
Short sell 4800 call at the range of 120+ (Now it is @ 108)
Aprox margin money req - 21000/-
It will be much safer option to short sell 4900 call @ 90-100+
When the markets correct we will focus on short selling put option & settle for a short strangle with a focus on range bound strategy.
Monday, August 24, 2009
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