Traders can sell October contract of NIFTY 5400 Call at the current market premium of Rs. 15. Considering the global economic headwinds NIFTY is unlikely to go past 5400 by 25th October 2011 when the contract is due for expiry. Hence the option seller will be able to pocket entire premum received. Also this month has very few trading sessions due to festive season and hence the time premium will erode fast.
Return from the trading strategy: