AN OPTION STRATEGY IN BANKNIFTY BEFORE THE OUTCOME OF ELECTION POLLS

BANKNIFTY IS HIGHLY VOLATILE INDEX AS WE ARE ALL AWARE. NOW AS THE U.P. AND OTHER POLLS RESULTS ARE ON THE CARDS ON 11 TH MARCH 2017 HERE I AM RECOMMENDING A STRATEGY FOR OPTIONS ARBITRAGEURS AND HEDGERS.
FIRST LETS TAKE A LOOK ON TECHNICALS OF BANKNIFTY FUT CHARTS. BANKNIFTY FUT TRADING IN A RANGE OF APPROXIMATELY 450-500 POINTS RANGE FOR THE LAST FOURTEEN SESSIONS. NOW READY TO BREAK THE RANGE ON EITHER SIDE.
HERE WE ARE NOT TRYING TO PREDICT THE POLL RESULTS . WE ARE ACTUALLY TRYING TO CAPITALIZE THE MOVEMENT ON EITHER SIDE AS BJP WIN MAY TAKE THE MARKETS TO NEW HIGHS AND VICE VERSA.
SO LETS TALK ABOUT THE TECHNICAL FORMATION .AS I HAVE MENTIONED 500 POINTS RANGE CAN GIVE A BREAKOUT NOW MY TECHNICAL GRAPH SUGGESTING ME THAT THERE MAY BE A 500-600 POINTS MOVEMENT FROM THE SPOT MARKET PRICE ON EITHER SIDE . THAT IS AT CURRENT MARKET PRICE WHICH IS 20725 CAN GIVE A DOWNSIDE MOVE UPTO 20222 AND ON THE UPPERSIDE MINIMUN MOVEMENT IS LOOKING AROUND 21300-21335. SO THERE IS AN OPPORTUNITY FOR THE MARKET PLAYERS.
BANKNIFTY OPTION STRATEGY 30 TH MARCH EXPIRY:LONG STRANGLE:
BUY CE 21300 AT AROUND 140-150.
BUY PE 20200 AT AROUND 140-150.
CALCULATION OF THE STRATEGY. TOTAL INVESTMENT 300 * 40=12000 PER STATEGY. MINIMUM RETURN EXPECTED25% TO 40%.