Nifty has bounced by testing the trend line on 15 minute chart, Also daily chart suggest me of a resistance level which is at 5175 and then 5200 zone. So instead of short selling at that resistance I will buy nifty 5200 put option at 62 level, target will be 74 and 79, I will also exit this strategy if nifty future breaks above 5200 level and book my loss. This strategy has limited risk as we are on long side of options which limits our losses to premium paid at time of buying it.
Traders may carry this positions till premium is more than 50. Strategy published on 21-June-2012 at 3:03 pm.
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