Identify Risk Free Options Suggestions In Nifty

By Author: swetha jain
Total Articles: 3
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Options posses their own value through the Derivatives Sector, producing a whole lot of Risk-free Strategies. We get hold of a lot of diverse strikes including different maturities of one fundamental stock. So that we will generate unique combination by making use of Call also Put Options associated with diverse strikes which can commonly often times earn Risk Free profits. Put Call Parity, Volatility Spread are some few incredible Nifty Options Strategies. One of the many good samples of a Risk Free Options Strategy currently comes with Nifty Options. In case we see Nifty Options Chain pertaining to June 2013, quickly try to make very good Put Call Parity in which will be able to provide us with virtually risk free proceeds.
Nowadays Nifty June Future is going to be running at 5820 on 11th June 2013 at 12.20PM as well as
Nifty 5700 June Call Option is running at Rs.165
In addition Nifty 5700 June Put Options is running at Rs.50
Certainly we may make Put Call Parity Trade by buying 5700 June Call, Selling 5700 June Put plus Selling 1 June Future.
To really make it descriptive
We've ...
... found
1. Bought Nifty 5700 June Call Option at Rs.165
2. Sold Nifty 5700 June Put Option at Rs.50
3. Sold Nifty June Future at Rs.5820
1. Rs. 165 Loss in 5700 June Call
2. Rs.50 Loss in 5700 June Put
3. Rs.220 Profit from Nifty June Future
The total net profit will be Rs.5 at 5600 Levels.
Similarly if Nifty reaches to 5900 levels on maturity then we will have following profit and loss in our portfolio,
1. Rs. 35 Profit in 5700 June Call
2. Rs.50 Profit in 5700 June Put
3. Rs.80 Loss in Nifty June Future
The total net profit will be Rs.5 at 5900 Levels.

And finally if Nifty remains constant at Rs.5820 level at maturity then we will have following profit and loss in our portfolio,
1. Rs. 45 Loss in 5700 June Call
2. Rs.50 Profit in 5700 June Put
3. No Profit No Loss in Nifty June Future
The total net profit will be Rs.5 at Currently the net portfolio geeks of the aforementioned three trades are zero, which signifies that the ultimate influence of these trades is in fact Nil. Which means that the change in pricing prior to starting the trade results in being our net and also risk free profit.
For Eg. In the case Nifty grows two to 5600 levels of maturation then we should have following profit along with loss in one's portfolio, 5820 Level.
To be sure the above techniques and strategies are presenting a fix earnings of Rs.5 at the levels within the market. It is never having any concern if the market soars, crashes or just is always constant. Many strategies which generally would make excellent returns concerning risk. You should note that ordinarily, If for example the Money Options is running at a cut price compared to Out of the Money Options because there's a lot having to do with STT upon expiration of every one of the In the money Options. But because the maturity is approximately 15 days away thus it will deliver effective earnings with regard to investors. We will need to render all the three threads concurrently to avoid the risk of adverse market movement. Very different kinds of algorithm process stock investing terminals are available which ensure the execution having to do with all the three trades at the time.