Derivative strategy on Nifty from Motilal Oswal

Here is the derivative strategy on Nifty from Sacchitanand Uttekar, Equity Technical Analyst, Motilal Oswal Securities

Derivative strategy on Nifty from Motilal Oswal
Sacchitanand Uttekar Mumbai
Last Updated : Jul 19 2016 | 8:36 AM IST
Here is the derivative strategy on Nifty from Sacchitanand Uttekar, Equity Technical Analyst, Motilal Oswal Securities for trade today:


Option Strategy :

 

Also Read


Nifty  (Call Ratio Spread)

Buy 8600 July CE @ 1 lot

Sell 8800 July CE @ 2 lots

 

Maximum profit: Rs 12150                 

Initial Outflow: Rs 2850  

Hedge Above: Rs 8950


 

Rationale: Nifty is in Long- Long unwinding Cycle. Highest Put concentration at 8400 indicates strong support, while unwinding in OTM Calls could provide strength towards 8700. Considering stable volatility and to benefit from theta decay, Call Ratio Spread is recommended
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First Published: Jul 19 2016 | 8:33 AM IST

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