This is for education purpose only and may not be useful for trading
Volatile day....the trading range is 3500-3730. 
Given the high volatility in the markets, avoid buying options.
From the start of this month, we have been writing both OTM calls and puts as the pure risk premium for ATM strikes is roughly 150 points....this is great considering the fact that this will vanish by expiry.
If you are long, keep 3500 as SL.
Given the high volatility in the markets, avoid buying options.
From the start of this month, we have been writing both OTM calls and puts as the pure risk premium for ATM strikes is roughly 150 points....this is great considering the fact that this will vanish by expiry.
If you are long, keep 3500 as SL.
If you are short, keep 3730 as SL.
In between, do nothing.
In between, do nothing.
If you feel compelled to do something, then write 3800 calls and 3500 puts...you can still earn 170 points (keep funds for hedging).
No comments:
Post a Comment