World markets are going crazy, and traders all over are bleeding gamma. Volatility has dropped below long term historical levels in a lot of markets, and naturally, traders are sitting long Gamma/Vega.
Nifty seems to scaling new peaks everyday, and is currently trading at 5600+ levels – looking all set to conquer 6000 by the end of this year. The all time peak now appears well within the grasp of the market, and one last moment of euphoria could take us there. Coal India IPO in October would be the final decider – if it goes through, we would be in for a new peak, or else, we may come down from here.
The trade here seems to be going long a strangle – buying 5400 Put and 5800 Call for November/December expiry. Will check the prices in more details tomorrow on this, but if its within 150 INR, then seems like a good trade.
Nifty seems to scaling new peaks everyday, and is currently trading at 5600+ levels – looking all set to conquer 6000 by the end of this year. The all time peak now appears well within the grasp of the market, and one last moment of euphoria could take us there. Coal India IPO in October would be the final decider – if it goes through, we would be in for a new peak, or else, we may come down from here.
The trade here seems to be going long a strangle – buying 5400 Put and 5800 Call for November/December expiry. Will check the prices in more details tomorrow on this, but if its within 150 INR, then seems like a good trade.
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