Smartinvestor : Markets have witnessed profit taking at higher levels today after the sharp rise last week. The Nifty seems to hold above 6,050 for now. What is your call on the Nifty in the options segment and strategy for investors?
Chetan Jain : NIfty has been making hihger highs on weekly and daily basis in last few weeks with strong recovery and now hovering near its January13 high levels(6120 future levels). Now if it holds thse levels then fresh rally towards 6200-6250 may be seen in coming days. We are suggesting to go for BULL CALL SPREAD Strategy by making spread of 6100 & 6200 (buying 6100 call & sell 6200 call) with limited risk of 32 (premium paid) and max risk of 68 ; BEP 6132.
Chetan Jain : * max reward 68
Smartinvestor : ICICI Bank is among the active stocks in the derivatives segment today. The stock is marginally down in the cash segment. What strategy should one deply for the stock for May options expiry?
Chetan Jain : ICICBANK has been consolidation between 1100-1170 levels in last two weeks and any sustainable move above 1175 levels may trigger for next leg of rally towards 1250-1280 levels. One can buy Out of the money naked vanila call option of 1200 strike price @12 ; max risk: 3000/- per lot and unlimited reward
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