Traders have made double-digit returns every month this year using this options strategy

The 50-share index has risen around 27 percent so far this calendar and the uptrend has been a fairly consistent one. On Wednesday, the index closed at  10,361, which is only around 130 points away from its lifetime high of 10490.45.

If you are among those who feel the index still has steam left, buying a call option for a strike price at the nearest 100-point multiple early on in the new F&O series could be the best way to play the trade.

Moneycontrol analysed the 11 F&O series in 2017 starting from January, which shows the Nifty index has topped a 100-point multiple at least once in every series.

This interesting trend in hindsight shows that if investor had bought out-of-the-money call option for strike price closest to the next 100 multiple of NIFTY level on the first day of the new series and sold it as soon as the option is at-the-money or close to it, he would have gained a minimum of 12 percent and maximum of 105 percent on that option. We back tested this for the last 11 F&O series. It has taken a maximum of 11 trading sessions to achieve double-digit growth so far in 2017.

For instance, on the first day of January series, Nifty 8200 Call open price was Rs 86.95 (8200 call was considered as previous F&O series closed at 8103.60). Within the series Nifty first closed near 8200 mark on January 04, 2017 at 8190.50 level, on that day Nifty 8200 call premium was 110.60. This trade has given 27.20 percent return on one lot to the derivative trader.