It is presumed that the markets shall be in trading range on Nifty between 4750 to 5050 till 13.06.2008. To capture the high IVs the following strategy can be looked into by highrisk traders for higher returns.
Sell 4800 put option of July at 190.00 and simultaneously sell 4900 call option at 210.00 where margin is required to be maintained...approximately Rs.80,000/- It gives a range of 4400 to 5300 on nifty. One should protect the positions by going short / long on Nifty futures once nifty breaks either 4750 on lower side or 5050 on upside.
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