Weekly Strategy | Stocks and Commodities

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December 22, 2013
Time: 8 pm

Weekly Strategy:

1. Volatility is very low.
2. So finding good price to sell options is very difficult now.
3. Also for this month there are only 3 more trading sessions.
4. So selling options in the current month is not good.
5. Next month is Q3 results month and it will be volatile and it will be difficult tp predict.
6. Also January is a 5 week month, time value is not in seller's advantage.
7. So we are suggesting to sell March 2014 Nifty 5500 Put option which is closed at Rs 29 on Friday.
8. There is no liquidity in 7200 Call option.
9. So wait for the markets to go up a little and then sell 7200 Call option if it trades above Rs 25.
10. Nifty is expected to trade between 5500 and 7200 for the next three months.