Date : 6.3.2013
Bulls captured 5800PE with 70L theory... if this holds tomorrow, we will see 5900 soon. Need to cross over Budget high of 5850 for this trend to gain momentum
Whenever a trend is changed, there is a huge temptation to buy OTM call or puts as in this case... though 5600 PE is only 11 Re, you can clearly see from option data, where the bets are placed... there is a small probability that it may goo towards the lows again... but would you put 10K for a 2% probability or 10K on a 60% probability... this is all there is to market movements... chasing a 2% probability could leave you with loss of principal... u may occasionally hit the jackpot, but you are better off at the horses with such a policy