Current Trading Strategy on NIFTY Spot @ 6017.70 on 29 Oct 2010

NIFTY Spot from 18 Oct 2010 to 29 Oct 2010

If we see the two weeks of trading session from 18 Oct 2010 to 29 Oct 2010. It is clearly indicates that Market is under very high level of volatility. On 20 Oct 2010 NIFTY Spot was 5982.10, on 25 Oct 2010 it was 6105.80 and lastly on 28 Oct 2010 it was again 5987.7 which was the level of 20 Oct 2010.

So we can take following trading strategy in NIFTY options :-


Long Strangle

means BUY *OTM Call + Buy *OTM Put


OTM - Out -of-the money

Buy NIFTY 6200 Call @ Rs.61 or between Rs. 40 to Rs. 60(according to your risk level) + Buy NIFTY 5900 Put @ Rs.77 or between Rs. 60 to Rs. 80(according to your risk level)

Note: This trading call is Nov expiry point of view. If you gain more that 25% to 30 % profit then booked it.