Option Trading Strategy for November Series
Nifty F&O Expiry for November on 24/11/2016
28 Calender Days and 18 Trading days till Expiry Starting 28th Oct 2016. 2 Holidays other than Weekend days for the Series.
VIX is Expected to Rise from Current levels and consolidates to the same level as of now near to Expiry.
Expecting a Volatility in Global markets due to 2 Major Events out of which US Presidential election is nearby.
The other thing is a Sell off in Equity Markets Globally which is anticipated by most of the experts
The Main reason is Both US Markets and Indian Markets are trading in a High PE Ratio which Investors might calculate as a Profit Booking level. Also in this Stage Fresh Buying is postponed by Retail investors which will add oil to fire if a Selloff Begins.
So this November series we are expecting a Minor Upmove in Nifty from Current levels due to a Positive impact if Hilary is expected to Win
But if Situation reverses and a Global Selloff begins we could see a slide of 400-600 Points this series itself.
This is the Option Trading Strategy for November series considering above aspects
1.Sell 8300PE...2 Lot @ CMP
2.Sell 8400PE...1 Lot @ CMP
3.Sell 8500PE...1 Lot @ CMP
4.Sell 8800CE...1 Lot @CMP
5.Sell 8900CE...1 Lot @ CMP
The above Trading Srategy Requires roughly 2.5 Lakhs and a Profit ranging from 0 - 21000 is expected within the Range 8300 - 8900 for the Current Series