COMPARISON BETWEEN DERIVATIVE & EQUITY

In derivatives trading, traders can hold long or short positions for more than 1 day whereas in equity trading, short sell trading are supposed to square off before the market closing on the same day. Traders must not carry forward their short positions in any way, denying which results in penalty around 20% in auction market Apart, these tips are divided into indexes and stocks. As said in our previous article, virtual scrips like nifty, bank nifty, cnx IT ect., are called as index stocks where as companies which exist in real are said to be stock scripts.

NIFTY SHORT STRANGLE STRATEGY

FRIDAY  being a shy day for the market , we are giving a short strangle strategy. This strategy is aiming to en cash option time value.

SELL  Nifty 5700 call @94

SELL Nifty  5800 put @96
TOTAL RETURN=(94+96)*50= 9500

LOWER BREAK EVEN POINT=5606

HIGHER BREAK EVEN POINT=5896

STOPLOSS WHEN CUMULATIVE PRICE GOES TO 230

OUTLOOK  FOR 7-9 DAYS