Date: 06 JULY, 2017
Scrip Name: BANKNIFTY
Strategy – LONG STRADDLE
Buy BANKNIFTY 06JUL 23400 CE at 65
Buy BANKNIFTY 06JUL 23400 PE at 35
Margin Requirement – Rs 4000 (approximately)
Max Profit: Unlimited if BANKNIFTY expires above 23500 or below 23300
Keep a SL of 50 points or Rs 2000 Loss
Maximum Loss: Rs 4000 (100*40) if BankNifty expires at 23400 (if one doesn’t keep SL)
Target 100 points premium gain
Upper Breakeven: 23500
Lower Breakeven: 23300
Reason – The weekly contract of index is up for expiry today. The index generally witnesses more than 100 points move in either direction during expiry. The VIX moving up would indicate a 100 point move on either direction is 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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