Jul 27, 2011

A Weak Opening and Weak close

Another Bear Day ...

Looks like Expiry has something to Say for August.

For tomorrow resistance lies at 5560 above it we may get 5588 - 5596 -5609 at the most. Selling pressure will emerge at 5609 . Above 5609 Doors are open for 5680 too but chances remote. On the contrary we have already closed below 5556  so the downside target comes at 5497 - 5464 - 5410.

Expiry Day Strategy ....

Buy 1000 5500 Puts and Hedge it with 5500 calls 4 lots. If the trade triggers then it will be a fortune earned in 5500 puts and if not then capital will get protected with 5500 calls.

To trade or not Choice is yours :)

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