SHORT TERM TRADES; WEEK STARTING 28/10/2013

• As all of us are aware, the coming week promises to be fraught with action. 29th October sees the RBI Policy and 29-30th October is the US Fed Meet. To top it all , October 31st is the expiry of a long F&O Series.
• The past week saw the Nifty rally waning somewhat with the Closing levels showing a bit of a slide from 6204 on 21/10/2013 EOD to 6144 EOD 25/10/2013. Nothing alarming thus far, but enough to raise a few red flags for the next week.
• The next week could be volatile and any positive / negative surprises from the two events could cause the Market to break out on either side. In short, I am expecting a 150 plus Nifty points move either side of 6150 by expiry day.
• So, this week, for Investors and traders in the Cash Market, I think it will not be advisable to take positions. Just take a breather till Thursday.
• For those of you who trade Options on the Derivatives side, there are possibilities. Some simple trades not involving complex ratio-strategies and targeted at traders who are also wary of Writing (Selling) Options are detailed below.

DLF

1. BUY 1 LOT DLF 150 CE AT 5 AND 1 LOT DLF 150 PE AT 3.6
2. TOTAL COST 8.6
3. TARGET 15
4. STOP LOSS 5

JP ASSOCIATES:

1. BUY 1 LOT JPA 45 CE AT 1.55 AND 1 LOT JPA 45 PE AT 0.95
2. TOTAL COST 2.5
3. TARGET 5
4. STOP LOSS 1

YES BANK:

1. BUY 1 LOT 350 CE AT 11.5 AND 1 LOT 350 PE AT 6
2. TOTAL COST 17.5
3. TARGET 25
4. STOP LOSS 12

NIFTY:

1. BUY 1 LOT 6150 CE AT 51 AND 1 LOT 6150 PE AT 56
2. TOTAL COST 107
3. TARGET 155
4. STOP LOSS 75.

ALL OPTIONS REFER TO THE CURRENT SERIES
BE NIMBLE AND DISCIPLINED AS THE MARKETS WILL BE HUGELY VOLATILE.
EXIT AS SOON AS TARGETS ARE ACHIEVED EVEN IF PRIOR TO 29TH. DO NOT GET GREEDY AND LINGER TILL EXPIRY UNLESS NECESSARY.
RESPECT THE STOP LOSS.

ALL THE BEST.

FOR EARLIER CALLS AND HOW THEY FARED LOOK HERE