The yesterday's rally is not a rally of continuous movements from its previous sessions. This is due to some kind of announcements like interest free loans to sugar sectors and sanction of two new road projects and more over the short covering was also helped the Nifty to climb up.
Most our facebook followers and readers of this blog are repeatedly asking how to deal with Nifty in options after a massive hike in Nifty futures happened yesterday.
Try this trick today in Nifty options.
The spot closing of Nifty was around 8214.
So potential traders can take the levels of 8300 and 8100 to make up an extreme arm in framing your boundary in Nifty options. Consider to trade the couple of 8300CE and 8100PE together. If the market moves positively today, add another option of 8400CE,otherwise add another option of 8000PE in your trade.
The target for this combination is 10 to 20 points profit of putting call and put together. Only delivery based high risk traders can aim 40 to 60 points in this fashion.
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