Generally making more than 500% is called home run in options. Hitting home run requires lot of patience and tactics. Last month when CHAMBAL FERTILIZERS stock value was at 47, PUT 40 was trading at 1.2 to 0.80 costing around 3600 bucks, there was lot of negative news flowing in and there was no much up move, we bought it as probability of hitting 40 was more. Then stock slid slowly to wards 40 then 35 then 30!!! It was huge profit as option value reached high of 13 i.e., more than 1100%!!!!
Look for cheap options which has highest probability of hitting, wait for bad news to flow, human fear will drive it like fire.
I suggest always to hold at least one cheap PUT in the basket during economic fears.
Cheapness not always earn you, make a your own research before taking a decision.
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