Date: 17/11/2014 Share Name: Nifty CMP: 8430
Strategy: Ratio Bear PUT Spread.
a) Buy 1 lot of 8500 PUT of Nifty of Nov Expiry for around Rs. 86.
b) Sell 2 lot of 8300 PUT of Nifty of Nov Expiry for around Rs. 20.
Profit Target: Rs. 2.500 Stop Loss: Rs. 1,150 (Both in absolute term.)
Reason: Currently Nifty is looking in overbought zone .So we would recommend a contra call on NIFTY through a Ratio Bear PUT Spread strategy on the nifty.The upside risk with this strategy is maximum of Rs 1150 and downside risk is unlimited. If at the last day of expiry, Nifty closes between 8454 and 8280 then this strategy will make the profit.
Advisory: Please Trade at your own risk because derivative investment involves a great amount of risk.
Strategy: Ratio Bear PUT Spread.
a) Buy 1 lot of 8500 PUT of Nifty of Nov Expiry for around Rs. 86.
b) Sell 2 lot of 8300 PUT of Nifty of Nov Expiry for around Rs. 20.
Profit Target: Rs. 2.500 Stop Loss: Rs. 1,150 (Both in absolute term.)
Reason: Currently Nifty is looking in overbought zone .So we would recommend a contra call on NIFTY through a Ratio Bear PUT Spread strategy on the nifty.The upside risk with this strategy is maximum of Rs 1150 and downside risk is unlimited. If at the last day of expiry, Nifty closes between 8454 and 8280 then this strategy will make the profit.
Advisory: Please Trade at your own risk because derivative investment involves a great amount of risk.