Good morning guys.. SGX Nifty is trading above 5900 - Up by almost 100 points and also all the Asian markets are trading in green.
Its a big day for markets tomorrow. Infy is coming out with results and given the volatility in the stock price on results day, the option premiums are very high.
As some of my friends observed, deep out-of-money options are trading at huge premiums.
2000 put @ 19, 2050 put @ 23.. 3000 call @ 18.5, 3050 call @ 15...
So I am planning to go with Short strangles - Selling 2000,2050 puts and 3000,3050 calls.. I am planning to square off these positions 1-2 days after results...
Note that the profit is limited and loss is unlimited in this strategy...
Please post your trades and suggestions in the 'comments' section. Have a nice trading day ahead.
Its a big day for markets tomorrow. Infy is coming out with results and given the volatility in the stock price on results day, the option premiums are very high.
As some of my friends observed, deep out-of-money options are trading at huge premiums.
2000 put @ 19, 2050 put @ 23.. 3000 call @ 18.5, 3050 call @ 15...
So I am planning to go with Short strangles - Selling 2000,2050 puts and 3000,3050 calls.. I am planning to square off these positions 1-2 days after results...
Note that the profit is limited and loss is unlimited in this strategy...
Please post your trades and suggestions in the 'comments' section. Have a nice trading day ahead.
Squared off positions... No profit no loss
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