Derivative strategy for Nifty from Motilal Oswal Securities

Considering long expiry and positive outlook, Call Butterfly spread is recommended

NSE incentives to boost ETFs
Shubham Agarwal Mumbai
Last Updated : May 27 2016 | 6:18 AM IST
Mentioned below is the derivative strategy for Nifty from Motilal Oswal Securities:

Option Strategy:

Nifty Strategy: Call Butterfly Spread

Also Read

Buy Jun 8,100 CE 1 lot

Sell Jun 8,300 CE 2 lots

Buy Jun 8,500 CE 1 lot

Target: 12,000                    

Stop Loss: 3,000

Rationale:

1) Nifty witnessed strong roll-over to June series

2) Option data suggest incremental addition in 7,900 and 8,000 Puts

3) Further unwinding in 8,000 CE in June series would augur directional move on higher side

4) Considering long expiry and positive outlook, Call Butterfly spread is recommended


Disclaimer: Motilal Oswal Securities ( MOSL ) is regulated by the Securities and Exchange Board of India ("SEBI") and is licensed to carry on the business of broking, depository services and related activities.Motilal Oswal Securities Limited is registered under SEBI (Research Analysts) Regulation 2014 SEBI Registration No :-INH000000412. MOSL or its associate might be involved in market making for the subject company or have potential conflict of interest.

Shubham Agarwal is a head of Quantitative Research, Motilal Oswal Securities  
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First Published: May 27 2016 | 6:18 AM IST

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