Street signs: Traders eye Budget, Damani effect on stocks, and more

Traders eye bounty from Budget
 
Derivatives traders are deploying strategies to profit from huge swings in stock prices typically seen on the day of the Union Budget. Market players say most traders using the so-called straddle strategy, which involves purchase of both call and put options of the same strike price and expiration date. “The straddle strategy will work if the market sees wild swings in either direction on the Budget day. In a rare event that the market reaction is muted, traders could lose money,” said an analyst. The market will be kept open on Saturday when the