NIFTY Review November 2013

Alas November 2013 Options expiry saw Nifty closing around 6090 !

What a great month November 2013 !

The last October 2013 options expiry saw Nifty closing around 6300! Now this month November 2013 we see its closing around 6100 !

What next is awaiting for December 2013 closure of Options expiry ? Nifty around 5800 ?

Nifty touched on 3rd November historical high of 6420 around ! Moved back to 6030 levels on 22nd November 2013.

So great and low levels we could see in November 2013.

How are the stress levels on Nifty. It was quite volatile and fluctuating in November 2013.

So adios to November 2013

Welcoming December mystery of NIFTY.

Strategy for December 2013:

Sell call December 2013 5800 NIFTY as NIFTY moves upto 6280 from the current levels and sit on the wall to see where it moves up or low !


cheers
Zilebi


 

One Week Before Option Expiry Strategy November 2013

Refer to my article on October 24th.

So here we have November 2013

The option strategy to be executed on November 21st (Thursday) and to be wound back on Tuesday 26th November 2013 (As options expire on 28th November 2013- Thursday)

The market is always a mystery so we see how well  the strategy works!. Review to be done on 26th Nov 2013.

Can there be an options strategy for this last week?

Let us see how it can work;

Bank of Baroda is trading currently around Rs 625-630 . Writing a put options at 600 and call option at 660  at the same time can give a total premium collection of about 11 Rs which equates to Rs.5500/-  for one lot of BOB which is 500 stocks.

Exactly on next Tuesday(26th November 2013)  this trade should be wound up for loss or gain. Gain could be roughly 2500 to 3000/- for an outlay of 4 sessions.

How did the Bank of Baroda perform between Thursday of the penultimate week of options expiry to the Tuesday before the option expiry day of Thursday for the past one year ? Its something like below ! What is significant of this chart ?

Update on 22 Nov 2013:

On 21st Nov due to heavy volatility in the market the 600 put was quoting at 8+ rs and 640 call quoting around 6+ rs. Combined together writing this combination of sell 600 put and sell 640 gives a option premium collection of 14 Rs so lot of 500 stock = 7,000/-

To be seen on 26th Nov 2013 Tuesday how to wind up the position.

cheers
zilebi
(Zilebi are you sleeping?
We cant make head or tail out of the above!)