Nifty, Bank Nifty options strategy: Nifty has started the April series on a positive note with the benchmark indices extending previous sessions’ gains, NSE Nifty 50 surpassing the 17500 level, and Bank Nifty trading above 41000. IIFL Securities has shared the Nifty and Bank Nifty options trading strategies for the April series, which it says could benefit investors.
NSE Nifty 50 options strategy
(II) Buy 1 Lot Nifty 18300CE at Rs 8 & Sell 2 Lots Nifty 18450CE at Rs 7
• Total Premium Received: Rs 21 per unit, or Rs 1,050 per lot (Credit)
• Stop Loss: Debit Rs 100
• Target Price: Rs 150
Along with the Buy & Sell calls, IIFL Securities shared a note, “This is a Short Gamma Ratio spread i.e. a price movement within the selling strike prices could yield a positive payoff. If the strategy is followed, you will stand to gain, if the Nifty expires above 16579 or subsequently below 18621.”
Expiry date: April 27, 2023.
Margin Requirement: About Rs 1,50,000 per lot
Bank Nifty options strategy
(I) Buy 1 Lot Bank Nifty 39000PE at Rs 112 & Sell 2 Lots Bank Nifty 38200PE at Rs 65;
(II) Buy 1 Lot Bank Nifty 43000CE at Rs 42 & Sell 2 Lots Bank Nifty 43500CE at Rs 25
• Total Premium Received: Rs 26 per unit, or Rs 650 per lot (Credit)
• Stop Loss: Debit Rs 200
• Target Price: Rs 300
Analysts at IIFL Securities said in a note, “If the strategy is followed, you will stand to gain if Bank Nifty expires above 37374, or subsequently below 44026.”
Expiry date: April 27, 2023.
Margin Requirement: About Rs 2,00,000 per lot
In the intraday trade on Wednesday, NSE Nifty 50 surged 113.50 pts 0.65% to 17511.55, BSE Sensex skyrocketed 459.22 pts or 0.78% to 59565.66 and Bank Nifty jumped 219.80 pts or 0.54% to 41,032.85. The top gainers on Nifty 50 were Bajaj Finance, Bajaj Finserv, ONGC, HDFC Bank and Coal India while the top losers were HCL Tech, Hindalco, Apollo Hospital, Eicher Motors and Asian Paints.