There is lots of speculation in markets about the plans that will come out of the EU summit, most of the traders chose not to trade till there is any clear outlook from meeting. We think this is best time to make good amount of money with this high risk event (EU Summit). We will deploy breakout strategy on Nifty options, traders must buy Nifty 5000 Call options and 4800 Put options (Both) with total premium not exceeding 180. However, traders should book 75% of profit in this strategy when total premium is 245 and hold rest positions for target of 265 (Total premium). Even though this is high probability trade setup, Stop loss is recommended as: Exit this strategy if total premium drops to 145. This is low risk strategy, we know outcome from European Union (EU) Summit will give a breakout in either direction, may be positive or negative. The strength of breakout will completely depend upon the news flow from EU Summit.
In Asian session, we are seeing selling pressure across the global financial markets, because traders are off loading their positions from risky assets and taking long positions in USD (As it is safe heaven in uncertain events). We advice traders to exit all the trading positions in future contracts, as it might be very risky as well. Today we will see nifty futures taking cues from the European region, follow the movements from Germany’s DAX index.
Nifty Options Jackpot Strategy: Buy Nifty 5000 Call options and 4800 Put options with total premium below 180, target will be total premium of 245 and 265. Exit this strategy if total premium goes below 145.