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Old 04-07-2013, 03:08 AM
TrendCatcher123 TrendCatcher123 is offline
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btw here ur premium risk is +40 and not -40!
Originally Posted by manoj agrawal View Post
Correct construction of Trade 2: ( from post#14)

Bought 500 Nifty Call 6100 July @ 10
Sold 2400 Nifty Call 6300 July @ 2.10

Risk in Trade 2.

Premium Risk:

500 x 10 - 2400 x 2.1 = - Rs 40.

Overnight 3% Gap Risk:

At present zero.

hope this trade is not the final one and only posted as the reason to educate the forum via ur dad's teachings coz if ur taking this trade seriously & till expiry, ur expecting nifty to close just below 6300 in next 15 trading sessions! though not impossible, quite unlikely (may b my diff mkt view). and if by expiry, it doesn't cross 6100, then ur +40 will become -ve (as ur nt using zerodha broker)

also, ur ratio call spread has an unusual ratio of 1:5 (rarely used) and tht too on far off strikes (again relative view). if i were bullish like u (as ur strategy suggests) i wud have opted for 6000 & 6100 strikes in the ratio of may be 1:2 or 2:3 or an inclusion of another strike via ladder

wt say?
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