 "Market, BSE, NSE, NIfty, Stock Market, investment")
Don't want to miss the best from Business Standard?
Recommended Strategy:
Strategy: Nifty Short Strangle
Expiry: 27FEB 2025
Strike Prices: Sell 22,300 Put @ 16 and Sell 23,500 Call @ 14
Net Premium Inflow: 30 points
Also Read
 "Markets, stocks, buy, sell, trading, shares, stock market")
 "share market stock market trading")
 "Media Majors, stock market, share market, stock trading")
 "markets, stock market, sensex, correction, nifty, shares, growth, profit, economy, gain")
 "silver trading silver investment")
Stop Loss: 60 points
Target: Entire Premium Inflow
Rationale
Market is likely to remain range-bound in the near term, adhering to the key Support & Resistance levels established over the past two weeks.
Key reference points for Nifty are: Support at 22,750 and Resistance at 23,450.
Given the current range-bound nature of the market, a Short Strangle strategy is an ideal choice to capitalize on time decay (Theta decay).
Make smarter market moves with The Smart Investor. Daily insights on buzzing stocks and actionable information to guide your investment decisions delivered to your inbox.
This strategy is profitable if the market remains in a tight range, benefiting from both volatility contraction and Theta decay.
(Disclaimer: Sahaj Agrawal is senior vice president and head of derivatives research at Kotak Securities. Views expressed are his own.)
 "ABB")
 "US equity market")
 "Gujarat International Finance Tec-City (GIFT City)")
 "SEBI")
 "NSE")
