My Budget Day strategy :
I have currently shorted 23500 CE around 260 with half qty of what I generally trade upon, kept half of my quantity open to short PE tomorrow maybe if I get similar premiums for a proper hedge position.
High premiums are indicative that market expects high moves, generally these premiums would decay massively post budget when market will take directional move. Would strictly avoid and advise every to refrain from option buying tomorrow as they will not truly replicate nifty moves.
3 days market run signifies that market is expecting a good budget and already discounting it by upmove. I predict downmove or consolidation if there is nothing too much extraordinary in the budget. It's gonna be a tricky scenario tomorrow
I have currently shorted 23500 CE around 260 with half qty of what I generally trade upon, kept half of my quantity open to short PE tomorrow maybe if I get similar premiums for a proper hedge position.
High premiums are indicative that market expects high moves, generally these premiums would decay massively post budget when market will take directional move. Would strictly avoid and advise every to refrain from option buying tomorrow as they will not truly replicate nifty moves.
3 days market run signifies that market is expecting a good budget and already discounting it by upmove. I predict downmove or consolidation if there is nothing too much extraordinary in the budget. It's gonna be a tricky scenario tomorrow