Nifty Option Trading Strategy for Budget Day 2013

General Budget will be presented by Finance Minister P Chindbram on 28 Feb.Budget is one of the most awaited events from stock market perceptive.We see Nifty trading in wide range of almost 150+ points and volatile moves will be seen. As most of retail investor will prefer trading the Option Route to trade ( They should not trade but still they cannot resist the temptation of not trading ;) ). 28 Feb also being an Expiry day will add more to Volatility.

The above depicts the Voaltality and Range Expansion Nifty has witnesed in past 6 Budget session.Just by going at the sheer number its looks mind boggling. So Stop Losses are must for traders on Budget day. Traders who are weak heart and cannot digest the bout of volatility you are going to witness just stay away from market.
So Following Option  Strategy can be used to play the Budget day:
A long ..

Continue Reading