 "Adopt 'Short Strangle' on Nifty ahead of Budget: Sahaj Agrawal, Kotak Sec")
Nifty Strategy: Short Strangle (6FEB2025 Series)
Strategy Details:
Sell 24500 CE & Sell 21900 PE
Inflow: Rs 40
Stop Loss: Rs 74
TGT: Entire Premium Inflow
Rationale:
> Union Budget 2025 scheduled for tomorrow, led to elevated volatility.
> Implied Volatility (IV) has spiked due to uncertainty surrounding the Budget announcement.
> The immediate Support & Resistance levels are: 22,700 & 23,400.
> In this environment, a Short Strangle strategy is attractive to capitalise on: Elevated IV and Time decay (Theta). This strategy offers the potential for profits if the market remains range-bound along with a contraction in Volatility post event and Theta decay.
=============
Disclaimer: Sahaj Agrawal is Senior Vice President, Head of Derivatives Research at Kotak Securities. Views are his own.
You’ve reached your limit of {{free_limit}} free articles this month.
Subscribe now for unlimited access.
Already subscribed? Log in
Subscribe to read the full story →*Subscribe to Business Standard digital and get complimentary access to The New York Times
Smart Quarterly
₹900
3 Months
₹300/Month
SAVE 25%
Smart Essential
₹2,700
1 Year
₹225/Month
SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months
Super Saver
₹3,900
2 Years
₹162/Month
Subscribe
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors
Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share
Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor
Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements
Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app
SAVE 25%