Derivative strategy on Nifty by Sacchitanand Uttekar of Motilal Oswal

Here is derivative call on Nifty by Sacchitanand Uttekar, Equity Technical Analyst & PFA at MOSL

Here is derivative strategy on Nifty by Sacchitanand Uttekar, Equity Technical Analyst  & PFA at Motilal Oswal Securities:

Option Strategy: Nifty (Short Strangle Strategy )

Sell  8300 CE 1 lot              Sell  7900 PE 1 lot

Target: 7500     

SL: 3000   

   

Hedge: Buy future above 8,400 or Sell future below 7,800      

Rationale:

1. Nifty gained 1.7% E-o-E. Index witnessed robust rollover to January series

2. Option indicative band suggest 8200 as highest call congestion while 8000 as immediate put congestion

3. Considering stable volatility, Index is expected to gyrate in band

 

4. Thus, Short Strangle strategy is recommended

Disclaimer: Motilal Oswal Securities ( MOSL ) is regulated by the Securities and Exchange Board of India ("SEBI") and is licensed to carry on the business of broking, depository services and related activities. MOSL is in the process of getting registered under SEBI - Research Analyst Regulations. MOSL, the spokesperson or his relatives, do not have financial interest in the securities mentioned above. The spokesperson has not served as a director, employee or officer at the subject company in the last 12 months. MOSL or its associate might be involved in market making for the subject company or have potential conflict of interest.

Sacchitanand Uttekar is an Equity Technical Analyst at Motilal Oswal Securities.