Election results day option trading strategy | How to trade on election results day June 4 2024

Election results day option trading strategy- Election Results will be announced on Tuesday June 4, 2024 during the day. And most importantly during stock market hours. So It is crucial day for all investors and traders that which party will get majority of seats in lok sabha.
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Top 2 Strategies for huge gains in Option Trading on Election Results Day June 4, 2024

Whenever any event comes nearer, emotions come into play with a bigger amplitude. All technicals and fundamentals go aside of them in these times. Most Indians are anticipating win for ruling party but a dilemma exist just for the number of seats depicting the strength of party. It is assumed that strong party at the top of country cater to greater economic growth and prosperity.

Market Experts View on Election Results

Most Experts say that elections are just a part of life of stock market. In short term these events create volatility and havoc in markets but long term investors may find opportunity to enter in any fall if happens more than 10%  from current levels. Nifty has restlessly breached high of 23,100 on May 27 itself and BankNifty kissed 50,000 levels. Now S&P Global Ratings on Wednesday revised outlook on six Indian banks including HDFC Bank, ICICI Bank, Kotak Bank, Indian Bank, SBI and Axis Bank. So overall view is positive for stock market even after elections. 

Option Trading Strategies for 4 June 2024

Strategy 1: Long Straddle

Buy @ 9:16 AM and Sell @ 3:15 PM

As VIX will be high and will remain high till the results are underway so premiums will not decay much for the day as counting will continue till after market hours. One Can create ATM Straddle by purchasing ATM CE & ATM PE in the morning. Kindly note that since VIX will be high so movememt in market will be unpredictable. Whenever you get the desireed Profit/Loss, book quickly

Example Trade: If Nifty Opens @ 22500 on June 4 at 9:15 AM,

Buy Nifty 6th Jun 22500 CE @ CMP   and

Buy Nifty 6th Jun 22500 CE @ CMP

It is necessary to keep strict Stop Losses and targets for your trade for whole day.

Strategy 2 : Long CE/PE after 1:00 PM

Next strategy to trade in options on election result day can be made waiting till 1:00 PM. By this time many regions poll might give directions to the winning candidates, so market may take one direction after 1:00 PM. It would be great to carry either CE or PE as per market direction. One can book partial profit by 3:15 and full profit next day also.

Example Trade: If Nifty is trading @ 22700 on June 4 at 1:00 PM,

Buy Nifty 6th Jun 22700 CE @ CMP 

and keep strict Stop and targets as market may show huge moves on election results trading day, if you are planning to carry the trade for next day then take risk with smaller quantities. 


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Futures, stocks and options trading involves substantial risk of loss and is not suitable for every investor. The valuation of futures, stocks and options may fluctuate, and, as a result, clients may lose more than their original investment. The impact of seasonal and geopolitical events is already factored into market prices. The highly leveraged nature of futures trading means that small market movements will have a great impact on your trading account and this can work against you, leading to large losses or can work for you, leading to large gains.

If the market moves against you, you may sustain a total loss greater than the amount you deposited into your account. You are responsible for all the risks and financial resources you use and for the chosen trading system. You should not engage in trading unless you fully understand the nature of the transactions you are entering into and the extent of your exposure to loss. If you do not fully understand these risks you must seek independent advice from your financial advisor.

All trading strategies are used at your own risk.