Option strategy on Nifty by Chandan Taparia, Derivatives & Technical Analyst At Motilal Oswal Securities:
NIFTY - BULL CALL SPREAD
BUY 1 LOT OF 10350 CALL @ 31
SELL 1 LOT OF 10400 CALL @ 13
MAX RISK : 18 POINTS (Rs. 1350/-)
MAX REWARD : 32 POINTS (Rs. 2400/-)
It has been holding the gains above 10300 strike
Intact Put writing at 10300 strike could support the index on decline
Intact Call writing at 10400 to 10500 could restrict its upside momentum
Thus a range bound, Bull Call Spread is recommended.
Disclaimer: The analyst may have positions in any or all the stocks mentioned above.