A Week before Options Expiry Strategy

So you see, we are nearing the option expiry next Thursday 31st Oct for Oct2013 futures and options market!

Can the NIFTY touch a good 6300 giving good lights and sounds show for Deewaali ?

The market is always a mystery so we see how well the upcoming week goes for the Muhurut trading.

Can there be an options strategy for this last week?

Let us see how it can work;

Bank of Baroda is trading currently around 590. Writing a put options at 560 and call option at 640 at the same time gives a total premium collection of about 11 Rs which equates to Rs.5500/-  for one lot of BOB which is 500 stocks.

Exactly on next Tuesday this trade should be wound up for loss or gain. Gain could be roughly 2500 to 3000/- for an outlay of 4 sessions.

cheers
zilebi
(Zilebi are you sleeping?
We cant make head or tail out of the above!)