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| 9 Apr, 2014 Market Outlook |
#Share Market Outlook By Research Team of #Elite Wealth Advisors Ltd.
TRADING RANGES WILL ALMOST ALWAYS GIVE WAY TO A BREAKOUT ON THE UPSIDE OR A BREAKDOWN ON THE DOWNSIDE. THESE BREAKS ARE TRADING OPPORTUNITIES.
BUT, WHEN WE TRADE THESE BREAKS WITH OPTIONS, WE RISK THE EVENT OF POSSIBLE LOSSES DUE TO FALLING IMPLIED VOLATILITY.
To keep the impact of increased volatility to a minimum, it is important to reduce the impact of volatility. To achieve this, we should consider setting of bull spreads and selling of out of money PUT options.
SUGGESTED # STRATEGIES ARE FOR MAY SERIES
CALL SPREADS, BULLISH
| Buy 6200 Call | Market Price | 550 |
| Sell 6600 Call | @ | 287 |
| Net Cost: | 263 |
| Maximum Gain: | 137 |
The maximum gain of 137 point comes in if the
#Nifty closes at or above 6600 in May expiry. The breakeven for this trade is a
close at 6463. The Net Cost is the maximum loss which comes in if the Nifty
closes below 6200.
For More Call Us : 9650901058 / 011-40000919 / 8800233332
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