Option Strategy on Nifty by Motilal Oswal Securities

Option Strategy:

NIFTY – BEAR PUT SPREAD

BUY NIFTY 10100 PUT

SELL NIFTY 9950 PUT

MAX RISK : 43 POINTS (Rs. 3225/-)

MAX REWARD : 107 POINTS (Rs. 8025/-)

Rationale:

1. Index has rallied by more than 22% on YOY basis   

2. Fresh Call writing is seen at 10200 strikes

3. Major trend is intact to positive but a hedged strategy can be taken for protection

5. Thus a hedge strategy Bear Put Spread is recommended

Disclaimer: The analyst may have positions in the stock mentioned above.