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Sahaj Agrawal of Kotak Securities recommends Short Strangle on Nifty

Nifty50 is trading near the 22,800 support level, with the broader monthly range observed at 22,500 - 23,500

market, stocks, buy, sell, stock calls, stock market trading, stock market

Sahaj Agrawal Mumbai

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Recommended Strategy:
 
Strategy: Nifty Short Strangle
  Expiry: 20FEB 2025
  Strike Prices: Sell 22,300 Put and Sell 23,500 Call
  Net Premium Inflow: 26.5
  Stop Loss: 50  Target: Entire Premium Inflow
 
Rationale
 
Nifty50 is trading near the 22,800 support level, with the broader monthly range observed at 22,500 - 23,500.  The index has been consolidating within this range, indicating lack of strong directional momentum.
  A Short Strangle is an effective strategy to capitalize on time decay (Theta), as long as Nifty remains within the expected range without sharp breakouts.
  The chosen strike prices provide a comfortable buffer, allowing the position to remain profitable as long as Nifty stays within the defined range.  (Disclaimer: Sahaj Agrawal is a senior vice president and head of derivatives research at Kotak Securities. Views expressed are his own.)
 
 

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First Published: Feb 18 2025 | 6:19 AM IST

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