Two months ago, we had taken a break from The Lazy Trader series. That was a set up of trades with stock futures hedged with NIFTY futures.

For three months, we had tried another variation of those trades with options and called in Not So Lazy.

Once again, we go back to this strategy.

We sell PUTS in top 10 heavy weight NIFTY stocks and hedge the trades with equivalent amount of NIFTY PUTS.

These PUTS are for rounded strike prices as there are not much volumes in the intermediate strikes. As these strike prices are varying from 3-7% away from the current stock prices, we are hedging with NIFTY PUT 11200 which is about 700 points away.

The suggested likely set up would look like this:

Actual prices will vary but we shall be looking for initial credit of above Rs. 110000 with these strike prices.

Another beginning is made with this series. It is hoped that these trades will survive the daily volatility going either way.

Trade cautiously, trade profitably.

Disclaimer: This post and examples are for teaching purpose only and are not meant as advice/suggestion to trade in these stocks. Trading in Futures and Options can lead to big losses and should be done with appropriate knowledge and advice only. Mentioning the stocks here does not imply that I have a trading position or likely to take a trade in these stocks.