dravya

IDEA - Merger - 26% up - Now What?

dravya تم تحديثه   
NSE:IDEA   VODAFONE IDEA LTD
Personally,

I am entering into a long strangle.
This is an option strategy,
which is non-directional.

CMP - 97.6
Buying - 95 Put - @5.95
Buying - 100 Call - @5.35

Total Buying Cost - 11.30

I'll explain in detail in the comments after market hours.
تعليق:
Ok, so here is the reasoning.

My fellow new traders in learning mode, who have less idea about how options and option strategy works, should definitely search and read about this strategy. { in short, I don't care if it moves up or down, I just care about it moving. I'll make money if it does, I'll lose money if it doesn't . the expected result is that the gain of option (call/put) will be more than the loss in the other option(call/put) } A lot more detailed the strategy is, I just explained you in short.

Coming to this idea,

So, now that we have news, coming of merger and budget, and regulatory issues; I expect the stock to move good.

straddle ( another similar strategy) would have been more expensive and riskier.

Hence, bought this combo.
Thanks.

My timeframe is around 2-10 days depending on how it plays out.

I'll exit once it becomes unattractive.
تعليق:
For educational purpose only. Please don't trade options until you gain full understanding.
تم فتح الصفقة:
CMP - 104.1
95 Put - @4.00
100 Call - @8.75

Total buy - 11.3
Total now - 12.75

1.45 increase per lot (7000)
تعليق:
To all value of options - 13.1 . Trading active.
تم فتح الصفقة:
So it moves. 16% up.
100 Call - 14.3
95 Put - 2.2.

Total -16.5 now
I.e. 5.3 × 7000 increase
أغلقت الصفقة: تم الوصول للهدف:
100 Call - 14.1
95 Put - 2.2

Total 16.3

Buying done yesterday closing @ 11.3.

Total buy value - 11.3x7000 = 79,100
Total sell value - 16.3 x7000 = 1,14,100
Profit = 35,000 . Or around 40%

Was a safe trade moreover.

Cheers !!
تعليق:
Fellow traders and followers, you saw this trade and saw how we profited from it. We were hedged on both sides.

So I would encourage you to read up on option strategies and particularly 'strangle' to greatly benefit from such events with very less risk.

Regards.
تعليق:
Indicator update ( ADX Color Easy )

Wow !

It has surpassed even the green zone and is above 60.

usually adx doesnt hold these levels and should fall.


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