06
May
14

Update: Election strategy on Nifty

Continuing with the theme of increasing volatility after completion of the last phase of polling on 12th May, I have bought further strangles on Nifty. I have bought May series Nifty 6500 put & 7000 call. Although Implied Volatility (IV’s) is already high at 34-35 but it should go further north after 12th May. One thing is absolutely clear, Options are the way to play for elections rather than Futures. Also, I want to avoid taking one sided position because I don’t have clue which way results will pan out on 16th May. Given the unexpected outcome of 2004 & 2009 General elections and violent market reaction I don’t want to be caught on wrong foot with one sided position.

I might square off these strangles before 16th May if there is significant increase in IV’s.

Disclaimer: These are my personal views and you should do your own due diligence before acting on anything written in this blog. Please take reasonable care while trading in options, especially while selling. I am not advising anyone to sell or buy options. My purpose of writing this blog is to highlight my trading strategies.

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1 Response to “Update: Election strategy on Nifty”



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