HAPPY EID TO ONE & ALL IN ADVANCE

MAY THE ALMIGHTY BLESS ALL OF US........

My apologies to all as I had not been able to update my blog on time this month (It was already stated in the beginning of this MONTH).

Will try to post regularly from next month .

Thanking you all GUYS

Bye & enjoy the FESTIVE WEEK AHEAD......

Nifty Risky but Rewarding Strategy- OCT Expiry

Due to the holy month of RAMADAN I had not been able to update my blog on time.
Let us recap :

With a intraday correction in nifty of around 50-100 as already indicated in my last post on 10 Sep 09 Short sold CE 4900 & 5000 was to be squared up at 25 & 40 respectively.

Now if ur are willing to take risk then I would suggest : -

Short sell Oct 5100 @ 130-150
Sell Oct 5200 @ 65 - 80

& if Willing to take a GREATER RISK ( Though risk to reward tilted towards a GooD REWARD)
Then SHORT SELL OCT 5000 CE @ 190-210.

Let me also disclose that I have bought 200 qty 4900 PE @ 32 TODAY ( Though instead of 4900pe I should have bought pe 5000 @ 50) as I am expecting the nifty to close between 4800-4900 . I will square off as soon as I get 20-30 odd profit in possibly intraday move or on downward closing. I could also loose 32 points but it could also prove to be jack pot.

Nifty Short selling

Nifty Options short strategy has been yielding money on expected lines ..... Every one following the blog must be aware of the same........ Jai Ho !

As already posted on 5 Sep that all short pe of strike price 4300 & 4400 will be liquidated at every rise above 4700 ...... I had done so .........sold / squared up at 10 & 16 respectively.

Also advise in advance will short sell 4900 ce & 5000 ce on rise.
Today was an excellent day to short both ce 4900 & 5000.
So any one who has not taken the position may short sell 4900 ce & 5000 ce if spot nifty reached any where near 4870-4890 levels in intraday. But be cautious....... Markets are reeling under profit booking on every rise & visibly looks tired thus I am thinking to short both ce 4900 & 5000.

As already discussed earlier I have initiated short positions after liquidating my short pe in CE 4900 @ 85 & CE 5000 @ 60 ( today closing 63 & 34) will try to cover up on any market correction of 50-100-150 points (Possibility is building up for Sure)......... Lets see or cover my short ( i.e SL) CE 4900 only if Spot NIFTY closes above 4900 on a closing basis .

On any correction will be liquidating / squaring off ...short CE 4900 & 5000 & fresh short in PE 4500 or 4600 as per risk to reward appetite will be initiated....... Pls be on a look OUT GUYS

Nifty Strategy

The SSS ..... That is => Short Strangle Strategy
Will be profitable if u believe that NIFTY will expire between 4630 and 5050:

Strategy					Profitable		Total Inflow	Max Profit	Max Loss
Short Strangle
Contract	Act	Strike	At	Prem	Above	Below
OPT-NIFTY-24-Sep-2009-CE OPT-NIFTY-24-Sep-2009-PE	Sell Sell	4,900.00 4,800.00	at at	63.00 104.20	4,632.80	5,067.20	8,360.00	8,360.00	Unlimited

What I did the PREVIOUS week .... 31ST Aug - 4 Sep 09

As already posted earlier ( 1st Sep 09) I had stated that I will be liquidating my short potion on CE 5000 & 4900 & short position will be initiated on PE 4300 & 4200.


Had short sold CE 5000 @ 60 & CE 4900 @ 85 Also advised to Short sell CE 4800 @ 120+
( Posted on 25 Aug 09)

Result :

One had ample opportunity to square off CE 5000 @ 20-30 & CE 4900 @ 30- 40 CE 4800 @ 60-70

Profit u could have earned if u had traded like me :

In CE 5000 => 1 LOT 50 X 40 = Rs 2000/-
In CE 4900 => 1 LOT 50 X 40 = Rs 2000/-
In CE 4800 => 1 LOT 50 X 60 = Rs 3000/-

I had in fact short sold PE 4300 @ 50 & 4400 @ 70 (Strategy Posted on 1 Sep09)

Now PE 4300 @ 23 & PE 4400 @ 38................... (Both position as of now are giving me Rs 3000 per 1 lot)

In the coming week as & when the market crosses 4700 will square off PE 4300 & PE 4400 @ 10-15 & 20-30 respectively & will be in look out for fresh short positions in CE 4900/5000/5100 ( But will be CAUTIOUS NOW before taking short position) .

Every one who had been following my blog had ample opportunity to execute nearly all my calls at the recommended rates I personally intended to trade.

My strategy

I had already told in my earlier post that I will utilize every correction to short NIFTY 4200-4300-4400 puts ......

I already have short sold 5000 & 4900 calls since 26-27 Aug in the range of 60/90.
Premium has already eroded by 50 % to around 30/55 levels.

Today on 02 Sep 09 I had liquidated 2 lots of 5000 ce @ 34 (Short sold earlier at 60 level)
Short sold 1 lot 4300 pe @ 50 (Fresh position)
Expect the market to fall ... tomorrow ..... & with further fall will short sell 4300-4200 pe at around 60-70-80 level & square up calls of 4900 & 5000 strike (which I had short sold) .

Lets see what is in STORE...........!!!!!!!!

What to expect Tomorrow 02-09-2009 ?

Nifty has closed the crucial 4625 level. This is the trend maker & breaker level.
Any successive close below is a confirmation of very short term trend reversal.
If the NIFTY trades above & closes above 4625 it will be + ve for the markets & short term uptrend will be intact.

Remember what I had said on 31 Aug 09.

Q outing the same again .......

" When all the experts on TV , FORUM, PAID SITES NEWS PAPERS are predicting a rally beyong 5000 I will try to Short sell 4900,5000 , 5100 & 5200 Calls when the spot nifty trades in between 4810-4850. Although I will be closely monitoring my positions & my stop loss will be say for 4900 call .... 4900+premium amt ( rate at which short sold) = Spot Nifty ... like wise stop loss for 5000/5100/5200 calls

Let the experts be on one side I will be on the OTHER side & hope the ALMIGHTY will prove the heard wrong.
I always bear in mind that " ALWAYS EXPECT THE UNEXPECTED FROM THE MARKET"

Markets have corrected and proved the majority of the analyst WRONG.

If the Nifty trades below 4550- 4560 level ...........We may very well see 4500 - 4480 -4460