Bear Spread Strategy on Bank Nifty (31-August expiry)
Buy Bank Nifty 44,200 PUT at Rs 282 & simultaneously sell 43,700 PUT at Rs 120
Lot Size: 15
Cost of the strategy: Rs 162 (Rs 2,430 per strategy)
Maximum profit: Rs 5,070 if Bank Nifty closes at or below Rs 43,700 on 7 Sept expiry
Breakeven point: Rs 44,038
Risk Reward Ratio: 1:2.09
Approx margin required: Rs 13,500
>> Short rollover seen in Bank Nifty Futures on Thursday where Open Interest rose by 43 per cent (Prov) with Bank Nifty falling by 0.55 per cent
>> Short term trend of the Bank Nifty turned weak as it has closed below its 5,11 and 20-day EMA
>> Amongst the Bank Nifty options, call writing is seen at 44,000-44,500 levels.
Disclaimer: Nandish Shah is Sr. Derivatives & Technical Research Analyst at HDFC Securities. He doesn’t hold any position in the stock/index. Views are personal.
First Published: Sep 01 2023 | 6:57 AM IST