Derivative strategy on Nifty from Motilal Oswal Securities

Here is Nifty derivative strategy by Sacchitanand Uttekar, Equity Technical Analyst & PFA at Motilal Oswal Securities

Here is Nifty derivative strategy by Sacchitanand Uttekar, Equity Technical Analyst  & PFA at Motilal Oswal Securities

Option Strategy: Long Strangle

Buy Nifty 8,100 CE Dec 1 lot

Buy Nifty 7,800 PE Dec 1 lot

Target: 10,000                     

Stop Loss: 4,500

Rationale:

Nifty is in Short- Short unwinding Cycle

Index witnessed poor roll-over for month of November

Option data shows 8000 as highest Call & Put concentration

India Vix is quoting near 17.2%. Considering expected rise in VIX, Long Strangle 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. MOSL is in the process of getting registered under SEBI - Research Analyst Regulations. MOSL, the spokesperson or his relatives, do not have financial interest in the securities mentioned above. The spokesperson has not served as a director, employee or officer at the subject company in the last 12 months. MOSL or its associate might be involved in market making for the subject company or have potential conflict of interest.

Sacchitanand Uttekar is an Equity Technical Analyst at Motilal Oswal Securities