ALSO READDerivative strategy on Sun Pharma by Chandan Taparia of Motilal Oswal Derivative strategy on Nifty by Motilal Oswal Securities Derivative strategy on Bank Nifty by Motilal Oswal Securities Derivative strategy on Bank Nifty by Motilal Oswal Securities Option Strategy on Nifty Bank from Chandan Taparia of Motilal Oswal
Derivative strategy on Nifty by Chandan Taparia, Derivatives & Technical Analyst at Motilal Oswal Securities: NIFTY - BULL CALL SPREAD BUY 1 LOT OF 10350 CALL @ 70 SELL 1 LOT OF 10450 CALL @ 30 BEP: 10390 MAX RISK: 40 POINTS (Rs. 3000/-) MAX REWARD: 60 POINTS (Rs. 4500/-) RATIONALE: 1) It has been holding the gains above 10300 strike 2) Fresh Put writing at 10300 strike could support the stock on decline 3) Intact Call writing at 10500 and 10400 could restrict its upside momentum 4) Thus a range bound, Bull Call Spread is recommended. Disclaimer: The analyst may have positions in any or all the stocks mentioned above.