Derivative Strategy - Short Strangle - Update 1

Short Strangle

Sell 5400PE Feb 55.50 - 75.80 = -20.30
Sell 5800CE Feb 55.50 -  34.50 = 21.00

OI 5400 PE= increased by 2915000 – suggest downside for the Nifty is locked at 5400

OI 5800 CE= increased by 815550 – suggest upside for the nifty is capped at 5800

Nifty Should Trade in the Range of 5400-5800

Derivative Strategy - Short Strangle

Sell 5400PE Feb 55.50
Sell 5800CE Feb 55.50

Total Premium 111

Risk Below 5300 and above 5900

Derivatives Update - 6 Jan, 2011

Nifty is trading in Narrow Range of 6000 - 6200


OI Analysis


Built up of OI in puts 5700, 5800, 6000 - - Suggest strong support area for the nifty


Built up of OI in Calls 6100, 6200 - - Suggest strong resistance area for the Nifty

Bargain Trade


Buy BankNifty when Nifty is trading near its support area i.e. 6025-6050