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Positional Derivatives Strategy on BANKNIFTY (Long straddle) - IndiaNotes.com
Positional Derivatives Strategy on BANKNIFTY (Long straddle)
Nirmal Bang | Published: 05 Apr, 2017  | Source : IndiaNotes.com

Date: 05 APRIL, 2017

 

Scrip Name: BANKNIFTY

 

Strategy – LONG STRADDLE

 

Buy 1 Lot BANKNIFTY 27APR 21600 CE at 330


Buy 1 Lot BANKNIFTY 27APR 21600 PE at 275

 

Margin Requirement – Rs 24200 (approximately)

 

Max Profit: Unlimited if BANKNIFTY expires above 22205 or below 20995


Keep a SL of 100 points or Rs 4000 Loss


Maximum Loss: Rs 24200 (605*40) if BankNifty expires at 21600 (if one doesn’t keep SL)


Target 200 points

 

Upper Breakeven: 22205


Lower Breakeven: 20995


Reason – The RBI meet for policy announcement is due tomorrow and the volatility is near its bottom and is expected to increase which would help the strategy become profitable. A move of more than 600 points over the next 2 weeks is expected after the policy announcement which would help the strategy.


Pay off:


 

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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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