Option Strategy on Nifty by Motilal Oswal Securities

Major trend is intact to positive but a hedged strategy can be taken for protection

Option Strategy on Nifty by Motilal Oswal Securities
Photo: Shutterstock
Chandan Taparia Mumbai
Last Updated : Aug 04 2017 | 8:00 AM IST
Option Strategy:

NIFTY – BEAR PUT SPREAD

BUY NIFTY 10100 PUT

SELL NIFTY 9950 PUT

MAX RISK : 43 POINTS (Rs. 3225/-)

MAX REWARD : 107 POINTS (Rs. 8025/-)

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Rationale:

1. Index has rallied by more than 22% on YOY basis   

2. Fresh Call writing is seen at 10200 strikes

3. Major trend is intact to positive but a hedged strategy can be taken for protection

5. Thus a hedge strategy Bear Put Spread is recommended

Disclaimer: The analyst may have positions in the stock mentioned above.

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