first of all my apologies to ashish'sir for hijacking his thread.i promise this will be my last positng on options in this thread...
last week some time i had a profit of 13k approximately in a trading session,i bought 1000 shares of 5000 ca's @ 13+ brokerage makes it 14000 from tht days profits.later on nifty was sideways,so yesterday i bought 3600 pa(500 @ approx 6.10+ 500 rs brokerage makes it approx 3500 rs).
from here i expect nifty to rally starting this week as nifty has managed to close right at the neckline of the inverted h&s for 3 consecutive sessions.
Say if i was wrong about the inverted h&s,i know there are many others who are holdng nifty on h&s pattern,the massive unwinding of positions continued by short build up will bring nifty towards 4346/4248,at this point my calls would be trading at sub 3 -5 rs levels...i can cover my brokerage here by selling calls and puts,puts will be somewhere around 13..so i am basically losing approx. 6000 rs, if the inverted h&s fails....but if inverted h&s holds good then we are going to see a good 800 point rally.Even on a worst case scenario if nifty were to close at 4700-4800 this week,then i am holding calls at 35 rs.that makes it 35000 rs-4000 rs(puts)+ brokerage say(2000)=29000 and less 14000 capital makes it a profit of 15000 rs...
yes i know i am definitely counting chickens before the egg hatches,but i am here to learn from my mistakes and most probably i should be closing positions by this friday....
thanks
We can share our analysis for mutual benefit of this family.
Regards