Dear Investor,
Every expiry FII does around 1000-1500 cr in Index option as a strategy for expiry.However this month FII last did was -1450 cr on wed,21st.It was a short straddle 4700pe at around 60 and 4700 ce at round 100,so break even is at 4640 and 4800.Till tuesday they havent done any new strategy in Index options.we feel today is when they might enter a fresh strategy for expiry if this break evens are to be violated.So doing a Long straddle 4700 at 65 is prudent as Nifty rolls at 51% and Banks at 55,still has around 20-25% and can break these break evens levels.If in today's trade we see no major activity by FII on index options front we might square off one leg or entire strategy tomorrow morning itself and take fresh positions.So it is prudent to do the strategy today for an Expiry view of around 4820.In the event we see 4600 pe -4% OI change expiry can be any ones guess on the downside.
Every expiry FII does around 1000-1500 cr in Index option as a strategy for expiry.However this month FII last did was -1450 cr on wed,21st.It was a short straddle 4700pe at around 60 and 4700 ce at round 100,so break even is at 4640 and 4800.Till tuesday they havent done any new strategy in Index options.we feel today is when they might enter a fresh strategy for expiry if this break evens are to be violated.So doing a Long straddle 4700 at 65 is prudent as Nifty rolls at 51% and Banks at 55,still has around 20-25% and can break these break evens levels.If in today's trade we see no major activity by FII on index options front we might square off one leg or entire strategy tomorrow morning itself and take fresh positions.So it is prudent to do the strategy today for an Expiry view of around 4820.In the event we see 4600 pe -4% OI change expiry can be any ones guess on the downside.
Thanks and Regards
Rohit Saxena
Losers say it is hard and impossible, but winners say it is hard but not impossible." Rohit Saxena
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