Derivative strategy on Nifty by Chandan Taparia of Motilal Oswal Securities:
STRATEGY: NIFTY (Long Strangle)
Buy 9300 CE 1 lot
Buy 9100 PE 1 lot
1. Nifty Index is gyrating in the band of 9100-9300 in past few trading sessions.
2. India VIX is trading near the low of 11.70. Sustain move above 12.5-13 could see volatility surging
3. Considering onset of result season and geopolitical risk, Low risk Long Strangle is recommended
Reward / Target : Rs. 6000 (If market witnesses an either side move of more than 150-200 points with rise in volatility)
Risk / Stop Loss: Rs. 3000
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Chandan Taparia is a Deivatives and Technical Analyst at Motilal Oswal Securities.