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Positional Derivatives Strategy in SBIN (Butterfly Spread)

Nirmal Bang | 27 Jan, 2017  | Follow Author | Add to my Favourites 
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Date: 27 JANUARY, 2017

Scrip Name: SBIN


Buy 1 Lot SBIN 270 CE at 8.10

Sell 2 Lots SBIN 275 CE at 6.65

Buy 1 Lot SBIN 280 CE at 5

Margin Requirement – Rs 180,000 (approximately)

Max Profit: Rs 15600 (5.2*3000) if SBIN expires at 275 level

Max Loss: Limited to the brokerage

Reason – SBIN broken out above important CE OI position placed at 260 and is likely to test levels of 280. With the budget session and quarterly result announcement due in FEB expiry we expect the stock to witness high volatility and finally settle near resistance placed in between 270-280. There is no loss in the strategy hence it is a safe strategy to initiate.

Pay off:


247.70 -1.55
248.00 -1.10
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About Nirmal Bang

Founded in 1986 by Nirmal Bang, the Nirmal Bang is recognized as one of the largest retail broking houses in India, providing an array of financial products and services. Their retail and institutional clients have access to products such as equities, derivatives, commodities, currency derivatives, mutual funds, IPOs, insurance, depository services and PMS. The Group is headed by Mr. Dilip Bang and Mr. Kishore Bang.

For more information please write in to [email protected]

Disclaimer: The author has taken due care and caution to compile and analyse the data. The opinions expressed above are only the views of the author, and not a recommendation to buy or sell. Neither the author nor accept any liability whatsoever arising from the use of any of the above contents.

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