Trade setup for 11th August

  1.  Yesterday there was a lot of speculators who were betting on the AGR verdict. The option premiums on both sides were not falling. In fact, it was increasing for even slight movement in the spot. But finally, the supreme court adjourned it to August 14th. Today there will be a slight IV crash and the premiums may come down, especially that of banknifty. Yesterday was like waiting for the Lion which did not come. Let's see if this lion comes on August 14.
  2. Now pharma's are rallying. Yesterday, all pharma's were surging. Divi's lab came out with results and it has moved 11%. Nifty has closed in the green for 5 consecutive days.
  3. There has been some shooting near the Whitehouse today. It might not escalate as it was done by some local and is not by a terrorist organization.
  4. India vix is at 22 which suggests that Carona fear is almost gone.
  5. Russia has promised to come out with a vaccine by August. So the economy might be in fast track once there is an announcement of the vaccine. Probably, that is why markets are rallying every day.
  6. Singapore GDP has fallen by 45% in the second quarter sending it to the recession.
  7. There is a slight tension in the US and China relationship.
  8. ICICI has gone for fundraising via QIP. This is the 3rd fundraising by BFSI in a month.


  • I will be executing a call spread on Divis lab. The strikes I have not decided as they are not open yet. My workshop students will know why I will be doing that.
  • I am doing the below strategy 
    • 11800ce X -1
    • 12000ce X 1
  • The US markets were mixed. Dow gained 300+ points whereas the S&P was flat. Nasdaq closed in red. IT did not perform. 
  • European markets closed in the green. The gained around 0.5%.
  • Today morning the Asian markets are in green. SGX if up 44 points. So we may open above 11300. Let's see if we can sustain that. 
  1. $ is at Rs74.79
  2. Crude is at $45

  1. FII bought for 300cr and DII sold for 500cr