Golden Gem - Nifty Strangle ( Bull & Bear Fight )

Hello Pirates

This is a strangle between the bulls & the bears, its very tough to decide who will win the game for this series but yes, what if we play safe & gain in the end, its a fight between the bulls & the bears & we have to hunt down some gold bags in between the fight, thus one has to be safe, if a bull attack you or a bear attack you, you may end up loosing or winning, but that becomes a risky play.

So to avoid risk in the game, we have to take a strangle, who ever wins the game, we would be ending up winning the game.

If a bear wins we win & if a bull wins then also we win.

This is a game where we have to buy & sell & buy a lot of nifty, what it is exactly want to know it in detail, well here is it.

We all have seen a continuous rally in the market straight from 4550 levels to 5000 levels, there was no stop in the market for an healthy correction, thus a correction can be expected which can be healthy for the market to make the next up move.

One has to buy 2 lots of 4800 put in between 80 - 85 SL - 5080 on closing basis on nifty & sell 2 lots of 5000 call in between 135 - 145 SL - SL - 5080 on closing basis on nifty & buy nifty 1 lot at lower levels in between 4920 - 4940 SL - 4890.

So,

4800 = 83 * 100 = 8300

5000 = 137*100 = 13700

Total investment = 8300 - 13700 = 5400 + nifty 1 lot in future.

So if nifty fails to make its up move & cracks below 4890 levels then the call & put would rock& if Nifty is able to cross the 5050 mark on closing basis then we can see a up move till 5120 levels on the cards, so in the end of the game we are winning both sides.

So one can make out the returns one can get from the above strangle & the risk margin also reduces, this can be a golden chance & we can get the gains from PREMIUM & this diwali would be a ROCKING Diwali for us.

So we would like to wish all the best to all the Pirates & warning, don't initiate incomplete game, this is a war & if you are empty handed you may loose also, so those who only trade in options & planning to follow only the option strategy, play safe & with Stop Loss, better is to follow the RULES as said & enjoy the Game.

Trading in the stock market involves risk, the above mentioned information are my personal views, one may take advice or initiate the above game at there own risk.

Regards

Captain