In the last half hour, support-based purchases helped the index to recover part of its intraday reduction.
“On the daily chart, it forms the way of the inside bar and continues to trade well with its short -term dynamic average, which shows the overall positive remedy,” noticed the wealth management of Chandan Taparia, Head Derivatives and Technology, Motilal Oswal.
“If it holds above 24,800 zones, strength can be seen towards 25,050 and then 25,200 zones, while support is placed 24,800 and then 24,650 zones.”
Options on the front, maximum Call L OI 25,000 and then 25,200 is on strike, while the maximum put OI 24,900 and then 25,000 on strike.
Call L writing is found on 25,000 and then 25,300 strike, while putting put 24,900 and then 25,000 on strike.
Taparia has noted that the options indicate an elaborate trading range between the 24,500 and 25,500 zones, with the immediate range of 24,700 and 25,200 levels.
Along with this, Chandan Taparia said that by launching a bull -call lac spread strategy for the potential benefits of booming trend with market instability, anyone can ride a positive range in the range of bound stance in the index.
Bull Call Lee Spread
Traders are spreading bull Call to monetize benefits from the potential market rise. These include buying and selling Call Lo options with the same finish but different strike prices. Called Call l is usually money (ITM) or money (ATMs), while the sold is outside of Call L money (OTMs). This strategy results in a net debit for the merchant, as the cost of ITM/ATM Call is partially compensated by the cash flow produced by the Call Low.
Etmarkets.com(Prices until August 19)
Below is a graph of strategy paying:
Etmarkets.com(Source: Motilal Oswal)
(Disclaimer: The recommendations, suggestions, opinions and views given by experts are their own. This does not represent the views of the economic time)
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