Option Strategy

Buy 1 lot June 5100 call@ 130, Buy 1 lot June 5000 Put @ 130, Sell 5 lots May 4800 puts, Sell 10 lots May 5300 calls @ 11 and Sell 5 lots June 4200 Puts @ 12.

We recommend traders to hold this strategy till June expiry.  A risk taking trader may enter this strategy and the profit range for the month of May is 4780 to 5320. This range widens in the month of June and the strategy will make a loss below 4000 levels on the downside. There will be a minimal loss of 0.6% if Nifty closes at 5000-5100. Above 5000-5100 levels there is unlimited profit. The minimum profit for the strategy is 1.15% at 4900 and 5200. Maximum can vary in 2 ranges. 4100 – 4900 where maximum profit is at 4200 which is 13.5% and 5100 & above where maximum profit can be anything depending on Nifty movement, say at 5700 one can expect 10% of profit.

 Following are the trading calls: -

Buy Infosys @ 2636 SL - 2620 TGT - 2655/2660

Buy ICICI Bank @ 887.5 SL - 882 TGT - 895