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