Monday 20 March 2017

IDEA Merger News- A Tectical Option Strategy March Series

Hello Friends

IDEA had been in the news since last so many days, due to which the stock is trading with higher volatility. Lets utlize this as opportunity.

CMP-100

View: If we sell 75 put & 125 Call that is 25% far away either side. We have total 9 trading sessions left for Expiry hence moving beyond the broader range of 75-125 looks unfeasible.

Action:

Sell 1 lot March 75 Put@0.5
Sell 1 lot March 125 Call@0.5

Total Premium Inflow: 1*7000=7000/-

Total Investment(assuming 25% margin blocked)- 3.5L

A good Risk-Reward Trade.

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