Hey Guys!
Please let me know if this strategy can work out:
If the level of Nifty is 4500, take following actions:
1) Buy Nifty 5000 call
2) Buy Nifty 4000 put
The quantity of each option has to be the same
This way, when the market goes up, my call price increases, and I can sell it off, only to purchase call of a higher amount.
Similarly, when the market goes down, I can sell the put.
This is planned to be done over a frame of 1 month. For example, I will buy options with the expiry of August 2009, if the present date is July 29th.
I am a beginner in trading options.
I await expert views on this, and I am also open to any new strategies that may be recommended
Please let me know if this strategy can work out:
If the level of Nifty is 4500, take following actions:
1) Buy Nifty 5000 call
2) Buy Nifty 4000 put
The quantity of each option has to be the same
This way, when the market goes up, my call price increases, and I can sell it off, only to purchase call of a higher amount.
Similarly, when the market goes down, I can sell the put.
This is planned to be done over a frame of 1 month. For example, I will buy options with the expiry of August 2009, if the present date is July 29th.
I am a beginner in trading options.
I await expert views on this, and I am also open to any new strategies that may be recommended