SHORT STANGLE STRATEGY FOR NIFTY

Sensex closed at 17097, down 22 points and Nifty at 5105, down 11 points from the previous close. CNX Midcap index was down 0.67% and BSE Smallcap index was down 0.45%. Top Nifty gainers included ACC, Ranbaxy and Grasim while losers were Bharti Airtel, HUL and Idea.

NIfty consolidating between 5000-5200 levels ,so a break out,or a break down will give investors good amount of money.For twelve trading days market will stay in this range is bit difficult.So i am giving range of 4900-5300.So this type of range bound market "SHORT STRANGLE"will be a good strategy.Lets see how to do it.NIFTY SPOT is @5100 approximate,so SELL 4900 PUT @47 and SELL 5300 call @31 ,So we will get premium of Rs.78,loss we come only if market expire below 4900 and above 5300.