Bank Nifty Options Strategy By IIFL

Discussion in 'Must-Read Interviews, Articles & News Items' started by Arjun, Dec 9, 2020.

  1. Arjun

    Arjun Chief Executive Officer (CEO) Staff Member

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    IIFL has recommended a new Idea for the December series of Bank Nifty Options that could be
    beneficial to you.

    A. Buy 1 Lot Bank Nifty 28,000PE @ Rs130 & Sell 2 Lots Bank Nifty 27,500PE @ Rs 80.

    B. Buy 1 Lot Bank Nifty 32,500CE @ Rs 135 & Sell 2 Lots Bank Nifty 33,000CE @ Rs 81.

    - Total Premium Received: Rs. 57 (Credit)
    - Stop Loss: Debit Rs. 200
    - Target Price: Rs. 500

    Note: The above is a short vega spread, hence a price movement within the strikes sold in the
    underlying index would yield positive payoff. The strategy will stand to gain if Bank Nifty expires
    between 26,943 & 33,557. The maximum payoff will be achieved if Bank Nifty expires at 27,500 or
    33,000.

    Expiry date: December 31, 2020.

    Previous Recommendations:

    IIFL's clients have regularly benefited from Idea2Act strategies, which has a strike rate of 95%!!
    18 out of the past 19 recommendations have been positive and 1 open call.

    Click here to download the pdf copy from IIFL's website
     
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