Derivative strategy on Nifty from Shubham Agarwal

Mentioned below is the derivative strategy on Nifty

Derivative strategy on Nifty from Shubham Agarwal
Shubham Agarwal Mumbai
Last Updated : Mar 04 2016 | 2:57 AM IST
Option Strategy:  NIFTY Ratio Call Spread

Buy Mar 7500 CE 1 lot     Sell Mar 7700 CE 2 lots


Target: Rs 8200

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Stop Loss : Rs 2400


Rationale:

Upward shift in option indicated band with unwinding in calls in the early part of the expiry augurs well for up move to remain intact

Lower end 7200 and 7000 Puts remains strong support

In case of up move, Volatility Index is expected to further cool-off. To take advantage of falling volatility, Call Ratio 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: Mar 04 2016 | 2:57 AM IST

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