Creating a Systematic Trading Plan in Nifty with Bull Call Spread of first In the Money and At the Money strike price

Journal Title: International Journal of Marketing and Technology - Year 2012, Vol 2, Issue 5

Abstract

Bull Call Spread is a bullish strategy adopted in a range bound Stock movement with a slightly positive bias. It is created by buying In the Money Calls and selling equal number of Out of the Money Calls with the same expiry time. Both gains and losses are limited. An effort has been made through this Research paper to recommend a Systematic Trading Plan for Small Retail Traders or Beginners in the Stock Market, which is profitable, easy to understand, and doesn’t require thorough knowledge of the Stock Market. Results Research was carried out in Nifty from January 2008 to June 2011 to evaluate performance of Bull Call spread at different entry points during an F&O Series. If a trader enters this strategy on first working of a Week before expiry in a prescribed manner (which is simple to understand), he can get net annualized returns of 27%.

Authors and Affiliations

Priyanka Vashisht

Keywords

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  • EP ID EP19440
  • DOI -
  • Views 339
  • Downloads 12

How To Cite

Priyanka Vashisht (2012). Creating a Systematic Trading Plan in Nifty with Bull Call Spread of first In the Money and At the Money strike price. International Journal of Marketing and Technology, 2(5), -. https://europub.co.uk/articles/-A-19440