Comment on Trading India VIX - Simplified

William Brain commented on 06 May 2014, 03:20 PM

Thanks Nitin for your prompt response. Premiums of NTPC and Coal India seems to be okay when comparing with other stocks. What will be the impact of election result on these two stocks?

just i am doing a copy paste of what is written in that link

if NDA forms government, NIFTY might move between 5-10%. This move might not be sufficient to make profit. But stocks from particular segments like Infra, Bank, PSU and Power would make a rally due to the reform plans.

On the other hand, if third party gains majority, market fall will be unstoppable. I am expecting 30% downwards movement and that is sufficient for me to make profit.

I would buy ATM and nearest OTM calls of below stocks for which Option Premiums are comparatively low and has a good potential to rally if NDA forms the government:

NTPC
Coal India
IDFC
Bharti Airtel
Hindalco
BHEL
SBI

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