Hi Everyone,
I would like to give an update with the NIFTY trading strategy for the short term having US elections results to be declared on November 3rd (The election results are expected to delay by 1-2 weeks due to coronavirus and postal ballot, so we can expect a lot of volatility combined with new coronavirus waves in the western countries).
As you may see in the chart Nifty is in strongly bullish mode especially because of the RBI/Government support of buying the bonds every time during the market panic, But with the US election results to come in 2 weeks it is always good to have a trading strategy and also protect the downfall in our current portfolio with the expected volatility.
This is an options strategy effectively we are trying to buy insurance to protect from any huge downfall.
BUY NIFTY 11200 Put option expiring End of November or
BUY NIFTY 11000 Put option expiring End of November or
BUY NIFTY 10500 Put options expiring End of November
Options are always very very risky, Nifty may inch higher for few days but as we get close to the elections it may start to behave volatile. Please do not invest in options more than what you want to lose, Personally, I won't invest more than Rs. 5,000 - 15,000 in any option play. All the above options might expire worthless, so it is always good to have a stop profit just like how we have a stop loss :)
As always this is only for educational purposes and not financial advice. Please let me know your views in the comments and Please let me know if you would like me to analyze any particular share :)
Thanks!
I would like to give an update with the NIFTY trading strategy for the short term having US elections results to be declared on November 3rd (The election results are expected to delay by 1-2 weeks due to coronavirus and postal ballot, so we can expect a lot of volatility combined with new coronavirus waves in the western countries).
As you may see in the chart Nifty is in strongly bullish mode especially because of the RBI/Government support of buying the bonds every time during the market panic, But with the US election results to come in 2 weeks it is always good to have a trading strategy and also protect the downfall in our current portfolio with the expected volatility.
This is an options strategy effectively we are trying to buy insurance to protect from any huge downfall.
BUY NIFTY 11200 Put option expiring End of November or
BUY NIFTY 11000 Put option expiring End of November or
BUY NIFTY 10500 Put options expiring End of November
Options are always very very risky, Nifty may inch higher for few days but as we get close to the elections it may start to behave volatile. Please do not invest in options more than what you want to lose, Personally, I won't invest more than Rs. 5,000 - 15,000 in any option play. All the above options might expire worthless, so it is always good to have a stop profit just like how we have a stop loss :)
As always this is only for educational purposes and not financial advice. Please let me know your views in the comments and Please let me know if you would like me to analyze any particular share :)
Thanks!
Trade active:
Good to Add the 1-2 contracts of put options now with Market going inching 12,000 and we are also getting closer to the US elections
Trade active:
The put options have already generated more than 20-30% return to date. With today's fall in US market of about 3.5%. We expect another 1-2% fall in Nifty, One can book the put option profits of 40-75%. Please always keep a stop profit, exit 1 contract with profit and let the profit alone run.
Trade active:
If you had taken the Put options from this idea, you must have made a return of about a minimum of 50% profit. Global markets are looking very weak, on Friday Nasdaq fell about 2.5% triggering a huge fall in all tech stocks. Probably, this is an indication for Biden to win the elections, Always remember technicals/fundamentals will not work during any huge fall in the market. Always protect the downfall in your portfolio by paying a little premium in put options during these election time.