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If today Nifty moves further 2% from here, will it be UP or DOWN?


  • Total voters
    11
  • Poll closed .

soft_trader

Well-Known Member
Purchased 51/53 pair at the total cost of 123/-

50.55+72.90 = 123.45
Why you have choose 51/53 pair? shouldn't it be 50/53? Or I am wrong.

Because Nifty was around 5150 at that time when you have bought the pair. So 150 points OTM means 50/53 pair. isn't ?
 

soft_trader

Well-Known Member
51/53 July Pair cost is 44.95+86.45 = 131.4

But still can't figure out why you guys have taken 51/53 pair. I think it should be 50/53 pair. Because you you take 51/53 pair at 5150 then the weightage of Put will be more.
 

jamit_05

Well-Known Member
29.06.2012, Friday
NS = 5,149.15 (28.06.2012 closing price)

The base price for July 5100 CE/5300 PE = 130 -4 = 126 (Current Pair)

The base price for July 5200 CE/ 5000 PE = 133 -4 = 129
Divnain,

For the sake of clarity to all, in your post pls include only one reading... yesterdays base price - 4 = current base price.

Therefore, today's post will be 133 - 4 = 129; 129 is the base price for today. We do not have much use for any particular pair because we may buy any 100 OTM pair.

Thank you for you continuous contribution.

129 is the base for today. On monday EOD it will be 117;
 

jamit_05

Well-Known Member
51/53 July Pair cost is 44.95+86.45 = 131.4

But still can't figure out why you guys have taken 51/53 pair. I think it should be 50/53 pair. Because you you take 51/53 pair at 5150 then the weightage of Put will be more.
We know that only when one leg becomes ITM or ATM do we make a decent buck. We plan to hold only till Friday EOD... so 150 point move in a day is asking for too much.... therefore 100 OTM was the choice. The purchase was made because the cost was way too good... I bot at 122... it was a sure shot no loss pair...

Hope you are clear.

PS: Just for the sake of example... since we bot 51/53... if this gap was a downward one... then at nifty 5050 we would be sitting very rich right now.
 
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