India’s budget session in parliament has already began, we are hoping for new surprises from this budget. As this may be the last budget before the next general election. So it is more likely that Finance minister would be looking forward to bring in the reform in this budget, but if he fails to do so, then markets may retrace back lower. Hence, here exists very good nifty options trading opportunity for the current budget session. Below is my strategy for trading interim budget for 2013 – 2014.
Nifty Options trading strategy:
What I believe is markets can move strongly in either direction during this budget session. So here come trading opportunity in Nifty options, a traders can buy Nifty 6000 call and Nifty 5700 put option with total premium not more than 130 and targeted total premium will be 180 and then 225. Exit this strategy if premium drops to 100.