Positional Derivatives Strategy on NIFTY (Short Strangle)
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Date: 01 FEBRUARY, 2017
Scrip Name: NIFTY
Strategy – SHORT STRANGLE
Sell 1 Lot NIFTY 8800 PE at 274
Sell 1 Lot NIFTY 8400 CE at 254
Margin Requirement – Rs 100,000 (approximately)
Max Profit: Rs 9600 (128*75) if NIFTY expires in between 8400-8800.
Keep a Stop Loss of 40 points increase in total premium or Rs 3000 loss
Maximum Loss: Unlimited above 8928 or below 8272 (if one doesn’t keep SL)
Upper Breakeven: 8928
Lower Breakeven: 8272
Reason – With the budget announcement due the IV's have risen in the past few days and we expect to take advantage of the same. The strategy will be profitable in the range of 8272-8928. We expect the index to remain the profitable range for near term.
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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.
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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 IndiaNotes.com accept any liability whatsoever arising from the use of any of the above contents.
- Intraday Derivatives Call: Buy BANKNIFTY 21000 PE above 82 with stop-loss 50
- Intraday Derivatives Call: Buy BANKNIFTY 30MAR 21000 CE above 93 with stop-loss 60
- Intraday Derivatives Call: Buy LUPIN Future above 1474 with stop-loss 1455
- Intraday Derivatives Call: Buy SUNPHARMA 700 CE above 11 with stop-loss 7
- Intraday Derivatives Call: Buy BANKNIFTY 20900 CE above 55 with stop-loss 30
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