29th Feb gonna be a volatile day in terms of the index movement. It's likely. gonna be a day when you can make it big or loose it big. So few pointers to keep in mind . please feel free to add your points also:
My take:
1. Historically volatility drops significantly (15-20%) post budget announcement .last yr it saw a fall of 18% . so short strangle can be a good trade
2. Last budget.. Index intraday changed over 160 points but eventually closed almost flat . so avoid panic buy/sale intraday. Have support resistance levels for SL
3. with alot of stakes n expectations on budget, likely markets are likely to disappoint...so stag slightly short as a trend . short calls are the best bet.
4. Avoid Bracket orders , as the limits are likely to be executed very soon due to volatility.
Best of luck for the big day trade.
SM
My take:
1. Historically volatility drops significantly (15-20%) post budget announcement .last yr it saw a fall of 18% . so short strangle can be a good trade
2. Last budget.. Index intraday changed over 160 points but eventually closed almost flat . so avoid panic buy/sale intraday. Have support resistance levels for SL
3. with alot of stakes n expectations on budget, likely markets are likely to disappoint...so stag slightly short as a trend . short calls are the best bet.
4. Avoid Bracket orders , as the limits are likely to be executed very soon due to volatility.
Best of luck for the big day trade.
SM
