Derivative strategy on Nifty by Motilal Oswal Securities

Derivative strategy on Nifty by Sacchitanand Uttekar, Equity Technical Analyst & PFA at MOSL

Here is derivative strategy on Nifty by Sacchitanand Uttekar, Equity Technical Analyst  & PFA at Motilal Oswal Securities:

Option Strategy:

Nifty Modified Call Butterfly Spread
 

Buy 8250 CE 1lot              

Sell 8400 CE 2 lots

Buy 8500 CE 1 lot

Target: Rs 8700 at 8400                  

Initial Outflow: Rs 2600 

Limited Profit: Rs 1200 above 8500

Rationale:

• Nifty witnessed robust rollover of 66% January series with positive price movement
• Option indicative band suggest 8200 as highest call congestion while 8000 as immediate put congestion
• Any unwinding in indicative band could boost the momentum
• Considering stable volatility and to participate in upside momentum, a hedge strategy Modified Call Butterfly Spread is recommended

Disclaimer: Motilal Oswal Securities ( MOSL ) is regulated by the Securities and Exchange Board of India ("SEBI") and is licensed to carry on the business of broking, depository services and related activities. MOSL is in the process of getting registered under SEBI - Research Analyst Regulations. MOSL, the spokesperson or his relatives, do not have financial interest in the securities mentioned above. The spokesperson has not served as a director, employee or officer at the subject company in the last 12 months. MOSL or its associate might be involved in market making for the subject company or have potential conflict of interest.

Sacchitanand Uttekar is an Equity Technical Analyst at Motilal Oswal Securities.