2X return 2 days in a row!
- Abhinav Kumar
- May 27, 2020
- 1 min read
2 days in a row! Another 2x return day in Nifty today with a rising market.
27th May 2020 - Nifty moved from 9000 to 9100 (09:45 to 10:45am). This momentum led to a sharp rise in Nifty May 9100 CE price from 30 to 72 (more than 2x).
100 point increase in Nifty led to a 2x return on 9100 CE.
Q: Is it possible to make this kind of return everyday?
A: No. There will be 1-2 opportunities like this in a Weekly Expiry. There is no guarantee of this occurrence (depends on market movement) but when it appears, make full use of it.
Q: How much investment can be made to benefit from this kind of movement?
A: You have to pay Premium Price x Quantity. In this case, when 9100 CE was at Rs.30 and min quantity to trade in Nifty Options is 75 (also called as Lot size) and in multiples of 75, your cost will be 75 x 30 = Rs. 2250. If you sold this at 70, your profit will be 75 x (70-30) = Rs. 3000.
Options offer very high earning potential but it is an advanced form of Trading. Beginners in the Stock Market should avoid trading Options.
Do you want to know what is CE?
How does its price change based on Nifty?
Explore our online course on Options Trading
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