13 JUNE 2010 (FROM THE ANALYST)
NIFTY is range-bound on Short term basis & highly volatile on INTRADAY basis, thats a really deadly combination for both Intraday & Short term players. Those who are happy with small gains can only thrive in such markets. Those looking for big gains often end up with either losses or just benefiting the broker.
Not sure, I have mentioned this earlier or not but esp. for INTRADAY players, its those few GAIN days which you should not miss make up your month in between those days of small losses and some break-even days.
So, who gains in such markets?
You guessed it right, the OPTION WRITERS... Those who followed our Option Writing Strategy on website must have realized this by now. BULLISH day kills the PUT premium & BEARISH day kills the CALL premium but they dont rise int he same way as they get eroded !! If, I would have told you 45 points ZERO RISK at the start of the month, you might not have settled for it..... but now looking back at choppy markets, you would have happily took it.
At the cost of being repetitive, I again feel that NIFTY will stay between 4800-5200 to handout full 100 risk free points to our OPTION WRITERS. Looking at the options data, Nifty is expected to be range-bound between 5000 & 5100 with few spikes in between next week !!! But, yes... Never be stubborn with your predictions & expectations, this is today's data... Data can change and then so should be the analysis & strategy !!!
EQUITY CALLS: One drawback that we should mention here regarding Equity Calls is quick entry & exit for calls triggered in first half hour 0900 to 0930 AM. The calls which are active in first half hour FIRE to targets very quickly, so its good mainly for Online traders. Phone traders may find it hard to catch such ROCKET CALLS, which is similar to missing calls from SMS. Now thats something we dont want to do, so Phone traders, be very careful while subscribing to be prepared to miss such calls if they FIRE and one should never "CHASE A STOCK".
EQUITY CALLS PERFORMANCE (upto 11th JUNE):
EQUITY CALLS HIGHLIGHTS SO FAR THIS MONTH:
POSITIONAL CALLS: See below
NIFTY OPTION STRATEGY (100% SAFE):
We initiated our "OPTION WRITING" strategy on 03rd June with intention of capitalizing on Range-bound movements in addition to Global weakness, Volatility and GAP openings...
Sell Nifty 5200 CE & 4800 PE @ opening on 03 JUNE (both around 50)
100 Points collected.
UPDATE:
5200 CE @ 35 & 4800 PE @ 20 = 55
Already a GAIN of 45 points !!!
Lets enjoy Nifty'ing !!!!
NIFTY is range-bound on Short term basis & highly volatile on INTRADAY basis, thats a really deadly combination for both Intraday & Short term players. Those who are happy with small gains can only thrive in such markets. Those looking for big gains often end up with either losses or just benefiting the broker.
Not sure, I have mentioned this earlier or not but esp. for INTRADAY players, its those few GAIN days which you should not miss make up your month in between those days of small losses and some break-even days.
So, who gains in such markets?
You guessed it right, the OPTION WRITERS... Those who followed our Option Writing Strategy on website must have realized this by now. BULLISH day kills the PUT premium & BEARISH day kills the CALL premium but they dont rise int he same way as they get eroded !! If, I would have told you 45 points ZERO RISK at the start of the month, you might not have settled for it..... but now looking back at choppy markets, you would have happily took it.
At the cost of being repetitive, I again feel that NIFTY will stay between 4800-5200 to handout full 100 risk free points to our OPTION WRITERS. Looking at the options data, Nifty is expected to be range-bound between 5000 & 5100 with few spikes in between next week !!! But, yes... Never be stubborn with your predictions & expectations, this is today's data... Data can change and then so should be the analysis & strategy !!!
EQUITY CALLS: One drawback that we should mention here regarding Equity Calls is quick entry & exit for calls triggered in first half hour 0900 to 0930 AM. The calls which are active in first half hour FIRE to targets very quickly, so its good mainly for Online traders. Phone traders may find it hard to catch such ROCKET CALLS, which is similar to missing calls from SMS. Now thats something we dont want to do, so Phone traders, be very careful while subscribing to be prepared to miss such calls if they FIRE and one should never "CHASE A STOCK".
EQUITY CALLS PERFORMANCE (upto 11th JUNE):
- Execute Only 5 trades per day with entry only before 1200
- 90% ACCURACY in JUNE so far => 43 Calls, 32 Targets, 07 Closed in Profit @ EOD & 04 Hit SL
- TOTAL PROFITS (per LOT) = MORE THAN 1.5 LAC (Rs. 1,50,592)
- TOTAL PROFITS (per LAC) = NEARING 50,000 (Rs. 44,501)
EQUITY CALLS HIGHLIGHTS SO FAR THIS MONTH:
- 02 JUNE: BEST DAY - All 5 calls fired to TARGET (100% Accuracy) GAIN Rs. 25652 per LOT !!!
- 03 JUNE: WORST DAY - GAIN Only Rs. 4800 per LOT.. with only 1 active call (100% Accuracy)
POSITIONAL CALLS: See below
NIFTY OPTION STRATEGY (100% SAFE):
We initiated our "OPTION WRITING" strategy on 03rd June with intention of capitalizing on Range-bound movements in addition to Global weakness, Volatility and GAP openings...
Sell Nifty 5200 CE & 4800 PE @ opening on 03 JUNE (both around 50)
100 Points collected.
UPDATE:
5200 CE @ 35 & 4800 PE @ 20 = 55
Already a GAIN of 45 points !!!
Lets enjoy Nifty'ing !!!!