Before big event option buying is costly.. Traders fall in the trap..
Just see too much premium in 23500 CE, just one & half day to expiry...and Rs 120 premium... IV 22+ :annoyed:
Before big event option buying is costly.. Traders fall in the trap..
Just see too much premium in 23500 CE, just one half day to expiry...and Rs 120 premium... IV 22+ :annoyed:
So if one wants to go long for intraday one can sell 24000PE at 520+ and buy 23600 Pe at 160. Risk would be Rs.40 only. Or can buy Bn future at 23470 then the risk would be Rs.30 only. Why pay huge premium for 23500 CE. One can even sell 23700 call with this combo to bring down risk further to about 0 rupees.
I think one should play out just to get experience, play with low volume only ofcourse but dont stay put, you will lose small but will gain experience which is priceless
I think many traders saw it.. when it seems an very easy trade.. then mostly it is a trap... Bank nifty very sensitive to monetary policy... A big move 1%-2% is coming soon...
I'll rather wait and watch the chart for clear movement after policy than predict b4 it.. We'll get enough chance to trade after the announcement to tomorrow end...