Assuming that the 200 DMA @ 5134 for Nifty would hold or the strong Fibonacci 50% level of 5080 would hold. Also expecting the 5385 level as a strong resistance. A Debit Calendar Put Spread with one leg having long 1 lot June 2012 expiry 5100PE and on the other leg short 1 lot May 20112 expiry 5200PE.
| S.No | Strike Price | Option Type | Expiry | Last Price | Position |
| 1 | 5200 | PE | May-12 | 90 | Short |
| 2 | 5100 | PE | Jun-12 | 94.75 | Long |
This trade has a debit of 4.75 points and it is a delta negative, gamma neutral, theta positive trade. The stop loss for this trade is if Nifty falls below 5050 on large volumes. The maximum loss that would be incurred is 25 points when Nifty is at 5050. The maximum profit is when in the May Series Nifty Expires just above 5200. The profit would be 50 points. Above 5400 this trade will start to lose money. Exit at 5400 would result in a profit of 20 points.
The longer Nifty trades in the 5150 to 5350 range the profit would increase.
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