Options Pain Analysis - Nov

Analysis to interpret the Nifty closing price at the end of the contract using Option Pain. There are 6 trading days to expire and 8 days in all to expire. If you take a position now, that is, if you sell 4900 Put and 5200 Call (Nifty @ 5054 now)how much profit or loss you will make. According to Max Pain the nifty should end at or around 5000. The analysis is to find whether this strategy works out.

Proposed Position (taken on 18-Nov -09)

Sell 4900 Put Price - 21

Sell 5200 Call Price – 13

Range was 4989 - 5104. Perfect Month. Profit 34 points.

Total profits

Jun - 90

Jul - 80

Aug - 2

Sep - 62

Oct - -123

Nov - 34

Total -> 145 Points. Maximum Position holding days 5.

Thanks