Political Uncertainity

praveen taneja

Well-Known Member
#2
what will be the effect of political uncertainity on the market ?
buy call or put of nifty
buy both of same value bcoz next two day volatality will give u way to earn n exit from that but pls confrm from some one senior bcoz i m telling u with my exp not from any chart n technical analysis:cool:
 

AW10

Well-Known Member
#3
This strategy is called straddle in options world where one buys both call and put options at the same strike price. Though this strategy allow you to play on both the sides of the potential move... but it very much means that one of the option is going to loose money when other one gains. Disadvantage of this strategy is that it is costly strategy.. as you are buying 2 types of options hence double the investment.. As we are very close to the event, the options premium would have already gone up as option seller know that there will be straddle players entering the market. These strategy should be applied few days before the event, not at the last moment.

So, better of staying on the side and let market settle before putting your money in. Trading is about take the trades when odds are in your favour. It is not about getting into all opportunities.

Happy and successful trading.
 

sudoku1

Well-Known Member
#4
short term traders should keep their slates clean till the verdict.....& it may also happen 'buy on rumours sell on news......'
med term traders need not worry till 15450 is taken out.....;)