Wednesday, 8 February 2017

Option Strategy-Feb17(Post RBI Policy)

Hello Friends

After the RBI decision of rates unchanged, its time to take fresh view on markets & create option opportunity.

View: Nifty is overstretched and now chances of profit booking may arise at any point of time in the current series. To utilize and hedge the long portfolio once can go with following trade with downside bias:

Action: Buy 8700 Put@40 ; Sell 8900 Call@40

Net Premium paid: Zero

Upper Break Even Point: 8940
Lower Break Even Point: 8700

Risk: above 8940 is unlimited theoretically( traders can keep Stop Loss of 9030 levels around 70 points)

Reward: Unlimited( traders can expect 100/150/200 points can gain)

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