This idea sounds great to pocket the premium by selling nifty option calls and saving ourselves by buying equivalent Niftybees.Lets see the actual returns that we will make.As of today, Nifty is at 15163. Lets say we try to take premium out of April call.We will short NIfty 14000 CE which is at 1419, we will get 14000 + 1419 - 15163 = 256 points out of this. One lot is of 75 size, so we will pocket 256 * 75 = 19200 Rs in 2.5 months.But, we need to...
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Saturday, February 13, 2021
Saturday, December 31, 2016
Trading stocks that open with a gap and do they trend
Markets are random by nature. We have to look for events where the market will behave in a non random fashion.
Take the stocks which opened with a gap of more than 2%, then wait for 5/15 minutes for the stock to set the opening range. Then, take the trade in the direction which is showing strength.
For analysis purpose, lets start with gap up of more than 2%, does the stock rise? Data tested from 2012.
StockName , Sum of (close-open) %,...