THE BEST TRADING STRATEGY IN NIFTY ACCORDING TO CURRENT SITUATION (POSITIONAL BASIS)......23 NOV 2011

LOW RISK TAKER STRATEGY :- BUY NIFTY 5400 CALL JAN 2012 EXPIRY @ RS. 17 + BUY NIFTY 4200 PUT JAN 2012 EXPIRY @ RS. 53.50.


RISK :-  70.50
REWARD :- UNLIMITED
BREAK - EVEN POINT :-


UPPER BREAK - EVEN POINT :- STRIKE PRICE OF LONG CALL + NET PREMIUM PAID
STRIKE PRICE OF LONG CALL :- 5400
NET PREMIUM PAID :- 70.50






UPPER BREAK - EVEN POINT :- 5400 + 70.50 = 5470.50


LOWER BREAK - EVEN POINT :- STRIKE PRICE OF LONG PUT - NET PREMIUM PAID
STRIKE PRICE OF LONG PUT :- 4200
NET PREMIUM PAID :- 70.50
LOWER BREAK - EVEN POINT :- 4200 - 70.50 = 4129.50

ANALYSIS FOR LOW RISK TAKER STRATEGY :-


AFTER READING THE ABOVE TABLE IT IS CLEAR THAT RED PORTION IS SHOWING IF NIFTY SPOT CLOSES ON EXPIRY BETWEEN 4150 - 5450, THEN LOSS WILL BE THERE UP TO RS. 70.50 PER LOT. AND UNLIMITED PROFIT WILL BE MAKING WHEN NIFTY SPOT CLOSES ON EXPIRY BETWEEN 5500 - 5800 OR UPPER LEVELS FOR UPSIDE AND  NIFTY SPOT CLOSES ON EXPIRY BETWEEN 4100 - 3800 OR BELOW LEVELS FOR DOWNSIDE.




MODERATE RISK TAKER STRATEGY :- 

BUY NIFTY 5200 CALL JAN 2012 EXPIRY @ RS. 48.50 + BUY NIFTY 4400 PUT JAN 2012 EXPIRY @ RS. 86.

RISK :-  134.50
REWARD :- UNLIMITED
BREAK - EVEN POINT :-


UPPER BREAK - EVEN POINT :- STRIKE PRICE OF LONG CALL + NET PREMIUM PAID
STRIKE PRICE OF LONG CALL :- 5200
NET PREMIUM PAID :- 134.50


UPPER BREAK - EVEN POINT :- 5200 + 134.50 = 5334.50


LOWER BREAK - EVEN POINT :- STRIKE PRICE OF LONG PUT - NET PREMIUM PAID
STRIKE PRICE OF LONG PUT :- 4400
NET PREMIUM PAID :- 134.50
LOWER BREAK - EVEN POINT :- 4400 - 134.50 = 4265.50

HIGH RISK TAKER STRATEGY :- BUY NIFTY 4600 PUT JAN 2012 EXPIRY @ RS. 140 + BUY NIFTY 5000 CALL JAN 2012 EXPIRY @ RS. 109.