After a long while trading idea section is being restarted. Will try to publish one trading idea per month going forward. For the month of Marchone can sell Nifty put 1 lot 75 at Rs. Since is a very strong support area, it is highly unlikely that Nifty would close below that level in March series. Implied volatility at strike is quite high due to budget round the corner. Total Return from the trade: Considering one is able to sell the March PUT option of Nifty strike price at current market premium of Rs.

Since the above trading strategy is naked put writing, if the index goes below and closes below this level then there will be a loss of Rs.

The what happens if my put option expires is now reduced to Rs.

Nifty put option 6300 can let it this contract expire as it is highly unlikely for Nifty to breach level in current series. Needless to say that the put expired worthless.

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Sell Nifty put. Total Transaction cost assuming Brokerage cost including STT and other taxes at Rs. NIFTYTrading Idea. Meet the Author Amit Agarwal is an Equity Analyst and founder of InvestorZclub, a popular stock market blog.

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