F&O: Short strangle by selling 6300 put and 6700 call for March options

Check out the F&O trends in select stocks with Navneet Daga, Derivative Analyst at KR Choksey Securities

Check out the F&O trends in select stocks such as Infosys, SBI, Godrej Ind, M&M Financial with Navneet Daga, Derivative Analyst at KR Choksey Securities:

SmartInvestor:Markets seems to be softening a bit after a sharp rally in the past few weeks. The Nifty continues to trade above 6,500 levels as of now. What is your call on the benchmark for March options?

Navneet Daga:Nifty had seen very sharp rise in last few session, its due for consolidation and retracement. March options now can initiate short strangle of selling 6300 put and 6700 call. Likely that from current levels of 17.5 IV’s volatility is likely to come down.

SmartInvestor:Infosys is among the active stocks in the options segment today. What is your strategy for the IT major for March options expiry?

Navneet Daga:IT stocks had seen significant reduction in long open interest. Selling the rise is prudent strategy is more likely to go sideways rather than meaningful correction.


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