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Positional Derivatives Strategy on NIFTY (Short Strangle) - IndiaNotes.com
Positional Derivatives Strategy on NIFTY (Short Strangle)
Nirmal Bang | Published: 01 Feb, 2017  | Source : IndiaNotes.com

Date: 01 FEBRUARY, 2017


Scrip Name: NIFTY


Strategy – SHORT STRANGLE


Sell 1 Lot NIFTY 8800 PE at 274


Sell 1 Lot NIFTY 8400 CE at 254


Margin Requirement – Rs 100,000 (approximately)


Max Profit: Rs 9600 (128*75) if NIFTY expires in between 8400-8800.


Keep a Stop Loss of 40 points increase in total premium or Rs 3000 loss


Maximum Loss: Unlimited above 8928 or below 8272 (if one doesn’t keep SL)


Upper Breakeven: 8928


Lower Breakeven: 8272


Reason – With the budget announcement due the IV's have risen in the past few days and we expect to take advantage of the same. The strategy will be profitable in the range of 8272-8928. We expect the index to remain the profitable range for near term.


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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