Date: 18 MAY, 2017
Scrip Name: BANKNIFTY
Strategy – LONG STRADDLE
Buy 1 Lot 18MAY BANKNIFTY 22800 CE at 44
Buy 1 Lot 18MAY BANKNIFTY 22800 PE at 44
Margin Requirement – Rs 3520 (approximately)
Max Profit: Unlimited if BANKNIFTY expires above 22888 or below 22712
Keep a SL of 50 points or Rs 2000 Loss
Maximum Loss: Rs 3520 (88*40) if BankNifty expires at 21800 (if one doesn’t keep SL)
Target 100 points
Upper Breakeven: 22888
Lower Breakeven: 22712
Reason – The weekly contract of index is up for expiry today. The index is likely to witness high movement today with the global indices witnessing more than 1% move. The VIX is likely to move up sharply indicating a 100 point move on either direction is more likely which will in turn benefit the strategy.
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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.
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