Friday, August 19, 2005.
FUTURE INDEX NIFTY LTP (LAST TRADED PRICE) Rs.2384
We are now Long 500 future index Nifty at Rs.2384.40 and short the following options.
5 Calls SP2380 SOLD LTD Rs.27.75
5 Put SP2340 SOLD LTP Rs.11.50
5 Put SP2380 SOLD LTP Rs.22.00
Total: 61.25 x 500(5 Contracts)=30625.00
Total Premium Collected for the above contract was Rs.31425.00 (23475.00+7950)
Despite we have been wrong again; still we do not suffer any loss. More over from this point the time decay on the short option contracts is going to be largest and thus will provide us extra cushion.
At this stage trade does not need any adjustment. We will be selling some calls if Nifty starts drifting apart, which will not be necessary as the Nifty is still in the bullish mode.
We will see how the Nifty acts.
Wastej
FUTURE INDEX NIFTY LTP (LAST TRADED PRICE) Rs.2384
We are now Long 500 future index Nifty at Rs.2384.40 and short the following options.
5 Calls SP2380 SOLD LTD Rs.27.75
5 Put SP2340 SOLD LTP Rs.11.50
5 Put SP2380 SOLD LTP Rs.22.00
Total: 61.25 x 500(5 Contracts)=30625.00
Total Premium Collected for the above contract was Rs.31425.00 (23475.00+7950)
Despite we have been wrong again; still we do not suffer any loss. More over from this point the time decay on the short option contracts is going to be largest and thus will provide us extra cushion.
At this stage trade does not need any adjustment. We will be selling some calls if Nifty starts drifting apart, which will not be necessary as the Nifty is still in the bullish mode.
We will see how the Nifty acts.
Wastej