)
Strategy : Bank Nifty Bull Call Spread
Buy Sep 18500 CE
Sell Sep 19000 CE
Target Profit : 3500
Stop Loss: 1500
The respite in Bank Nifty was coupled with drop in Implied Volatility indicating reduction in downside Risk. Spillover of this positive sentiment could trigger a short covering move and can be traded with an OTM Bull spread.
Strategy: L&T Bull Spread
Buy Sep 1800 CE 1 lot
Sell Sep 1900 CE 1 Lot
Target Profit: 4400
Stop Loss: 1800
L&T remains in Long-Long Unwinding futures set-up and early writing in September series indicates favorable odds for going Long. Considering the volatility, it makes sense to trade with a Bull spread (Limited Loss Strategy).
Shubham Agarwal is a head of Quantitative Research, Motilal Oswal Securities
