Derivative strategy on Nifty from Motilal Oswal

Here is the derivative strategies on Nifty from Sacchitanand Uttekar of Motilal Oswal for trade today:

Option Strategy:

Nifty: Ratio Call Spread

Buy 8600 Jul 1 lot

Sell 8800 Jul 2 lots

 
Target: Rs 11800  

Stop Loss: Rs 3200

 

Rationale: Nifty is in long- long Unwinding cycle. Option data suggest upward shifty in option band to 8700. Unwinding in OTM Calls in July series would augur directional move on higher side. Considering falling volatility and to benefit from theta decay, Ratio Call Spread is recommended.