Nifty is continuously testing the resistance zone showing signs of strength
Given the set up, one may consider a short strangle strategy
An example of Short Strangle
Sell Nifty 29 Feb expiry
21700 Put option around 160
22450 Call option around 140
Total incoming 300 points.
Max profit potential of approx 12% on Margin Capital
Inbuilt protection
- for a rise up to 22750 or
- for a fall up to 21400
Review zone
If Nifty crosses 22450 or
If Nifty falls below 21700
Thereby giving ample scope to adjust / exit with minimum damage.
Take care and safe trading...!!!
Disclaimer:
- The view is my personal opinion
- trading in F&O is very risky
- pls do due diligence and research
- It is your hard earned money so treat it wisely
- consult with your Financial adviser