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Positional Derivatives Strategy on NIFTY (Short Strangle)

Nirmal Bang | 01 Feb, 2017  | Follow Author | Add to my Favourites 
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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.


Pay off:


 


  Read full report Click here to read the full report


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 editor@indianotes.com


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.




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