 "Derivative strategy for Bank Nifty from Motilal Oswal Securities")
OPTION STRATEGY
Bank Nifty: Bear Put Spread (Exp- 30Jun2016)
Buy 17300 30JUN2016 PE 1 Lot
Sell 17000 30JUN2016 PE 1 Lot
Maximum loss: Rs.1350
Maximum profit : Rs. 7650
Rationale: Bank Nifty is in long unwinding cycle. Option indicative band suggest 17500 as immediate resistance and 17000 as immediate support. Considering higher implied volatility, a hedge strategy 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
