Post Market Report, September 13, 2013 | Stocks and Commodities

P R Sundar, Aditya Trading Solutions

September 13, 2013
Time: 3.30 pm

1. Markets have closed falt as expected.
2. For next few sessions also markets will be highly volatile but will not go up or down significantly from here.
3. After FOMC announcement about Fed Tapering, markets will take a direction.
4. Volatility has come down to about 28 fro the peak of 35.
5. The best strategy when the volatility is high is the short stangle as suggested earlier.
6. Those who have sold both 5700 Put and 6100 Call have made a profit of Rs 2000 per lot in just two trading sessions.

Recommendation:

1. Volatility is likely to fall down by the end of next week and long term investors can sell Nifty 3500 Put option expiring in December 2014 and Nifty 8500 Call option expiring in December 2014. Total premium is about Rs 8500 per lot. This is a return of about 40% plus for a period of about 15 months. So annualised return works out to be about 32%. This is a great return condidering the lowest possible risk.