Derivative strategy for Nifty from Motilal Oswal Securities

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Here is the derivative strategies on Nifty from Sacchitanand Uttekar of Motilal Oswal for trade today:

Option Strategy :  Nifty (Long Strangle)

Buy 8700 CE Sep 1 lot                      

Buy 8600 PE Sep 1 lot

Total Premium: 210                         

Target: Rs 10000             

SL: Rs 5000

· Nifty is oscillating in narrow band of 8550-8700 in past couple of weeks

· Option Data is suggesting 8500-9000 range for September series

· Implied volatility  is quoting near the lower end around 12%-13%.

· Considering expected rise in volatility and momentum to pick up in September series long Strangle for is recommended

Disclaimer: Motilal Oswal Securities ( MOSL ) is regulated by the Securities and Exchange Board of India ("SEBI") and is licensed to carry on the business of broking, depository services and related activities. MOSL is in the process of getting registered under SEBI - Research Analyst Regulations. MOSL, the spokesperson or his relatives, do not have financial interest in the securities mentioned above. The spokesperson has not served as a director, employee or officer at the subject company in the last 12 months. MOSL or its associate might be involved in market making for the subject company or have potential conflict of interest.

Sacchitanand Uttekar is an Equity Technical Analyst at Motilal Oswal Securities

 

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