Punting on election results

This is a short-term situation where traders could make big profits or big losses on their trading strategies

Election results are due on May 23, which is also weekly settlement day for Nifty and Nifty Bank options, with the previous settlement on May 16. This period is likely to see extreme volatility, which will continue until May 30 settlement at the least.

Option traders will get a chance to make (or lose) a quick buck. Here are a few thoughts. The market has started falling, mostly due to Donald Trump’s derailing of US-China trade talks. But there is also nervousness with some BJP top-brass signalling that the National Democratic Alliance (NDA) isn’t likely to win a majority, since it