The 4700PE-5600CE bought at 83 (when NIFTY was around 5280) is now trading at 110 with 27 points profit. Asked to close 50% at 5480. Book 100% at 5225-5250. And Again trade for Shorts for 250 points on the downside.
This time we will Trade a Bear Strategy of
Buying 5300 PE @ 82 and Selling 5200 PE @ 62.
It is a Limited Risk and Limited Profit Strategy.
Per lot the Loss will be limited to around 750 even if the market reaches 6000.
The Profit at 5250 would be 1500. At 5000 the profit would be 2500
It is more or less a VOLATILE Neutral strategy.
If there is a clear Trend on the downside, then You can buy more 5300 PUT
Those who executed the strategy, now the combined premium is at 180.
The Profit would be
5300 PE - Profit is 115-82= 33 points
5200 PE - Loss is 86-62 = 24 points
So net profit of 9 points.
Try to close the Strategy around 5250-5300, where it should give the MAX Profit.
You can book 50% profit around 5420