Regular Income From Markets. Risk Free. Takes no Time
- Thread starter jamit_05
- Start date
- Tags derivatives options regular income risk free safety
Infosys Strangle Option for Tomorrow.
Infosys results are due for tomorrow. The stock is trading between 2400-2500 for the past ten days. There are also heavy Shorts in 2500 CE and 2400 PE. So if you find the stock trading near the 2450 levels. You can go for 50 OTM strangle. ie Buy 2500 CE and 2400 PE.
Currentlt they are trading at a combined premium of around 160.
you can also go for the 100 OTM if you have less premium.
Infosys results are due for tomorrow. The stock is trading between 2400-2500 for the past ten days. There are also heavy Shorts in 2500 CE and 2400 PE. So if you find the stock trading near the 2450 levels. You can go for 50 OTM strangle. ie Buy 2500 CE and 2400 PE.
Currentlt they are trading at a combined premium of around 160.
you can also go for the 100 OTM if you have less premium.
I am not sure how many of you went for this strategy... But I noticed one strange thing....
Infy was trading around 2475 and so I went for 75 OTM calls ie 2400 PE and 2550 CE.
Bought 2400 PE at 64.25 and 2550 CE at 72.65.
Since the stock was trading close to 2475, both the prices are going up. At some point 2400 PE trading at 79.75 and 2550 CE trading at 72.9. So sometimes when there is demand for both PE and CE, no matter what the price goes UP for both PE and CE...
So this might be another strategy to make money on the same day... I am anyway holding the positions for tomorrow.
While I was typing the message...
2400 PE closed at 88
2550 CE closed at 67.
Still the EOD profit is (88+67) - (64.24+72.65) = 18.11 points.
We have to wait and see if the profit holds up for tomorrow...
Will try the same for TCS tomorrow because TCS would declare the results after market hours. But you have to buy around 2 pm because towards the end of day everybody is buying
Infy was trading around 2475 and so I went for 75 OTM calls ie 2400 PE and 2550 CE.
Bought 2400 PE at 64.25 and 2550 CE at 72.65.
Since the stock was trading close to 2475, both the prices are going up. At some point 2400 PE trading at 79.75 and 2550 CE trading at 72.9. So sometimes when there is demand for both PE and CE, no matter what the price goes UP for both PE and CE...
So this might be another strategy to make money on the same day... I am anyway holding the positions for tomorrow.
While I was typing the message...
2400 PE closed at 88
2550 CE closed at 67.
Still the EOD profit is (88+67) - (64.24+72.65) = 18.11 points.
We have to wait and see if the profit holds up for tomorrow...
Will try the same for TCS tomorrow because TCS would declare the results after market hours. But you have to buy around 2 pm because towards the end of day everybody is buying
It is because ofthe results. The premiums will fall sharply tomorrow if the results are as expected and Infy does not move much. In case of a surprise result the move would need to be substantial (my say would be atleast more than 120 move in underlying) in order to make some money.
Hope it pays off for you.. All the best for your results.. :thumb:
VK
Hope it pays off for you.. All the best for your results.. :thumb:
VK
Last edited:
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