Sahaj Agrawal of Kotak Securities suggests 'Short Strangle' for Nifty today

Nifty today: 21,800 likely to act as a key support while 22,500 remains the immediate barrier on the upside

Strategy Details:

  Strategy: Nifty Short Strangle

  Expiry: 6 March 2025

  Strike Prices: Sell 21,800 PE and Sell 22,500 CE

  Net Premium Inflow: 38

  Stop Loss: 74

  Target: Capture the entire premium inflow

 

Rationale:

  >> 21,800 likely to act as a key support while 22,500 remains the immediate barrier on the upside.

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

  >> Nifty is expected to remain confined within 21,800–22,500 over the coming few days.

  >> Short Strangles using the Weekly series are ideal 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.