Nifty: Sahaj Agrawal of Kotak suggests Short Strangle for weekly F&O expiry

Stock Market Today: The Nifty index is expected to trade within 22,000-23,000 range over the coming week

Nifty Today:

  Strategy Details:

 

Strategy: Nifty Short Strangle

Expiry: 6 March 2025

Strike Prices: Sell 22,000 PE and Sell 23,000 CE

Net Premium Inflow: Rs 33

Stop Loss: 64 points

Target: Capture the entire premium inflow

 

Rationale:

 

>> 22,000 will likely act as a key support for Nifty share price, while 23,000 remains the immediate barrier on the upside.

 

>> Technical oscillators on Nifty chart indicate a potential stabilising effect after the sharp selloff.

 

>> The Nifty index is expected to trade within 22,000–23,000 range over the coming week.

 

>> Short Strangles are ideal strategies to capitalise on Theta decay.

     

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Disclaimer: Sahaj Agrawal is senior vice president and head of derivatives research at Kotak Securities. Views expressed are his own.