Derivatives Strategy - Positional Option - June 19, 2020 - ICICI Securities

Recommendation

Sell Bank Nifty June 20100 Put at Rs. 175-205
Target: Rs. 5
Stop loss: Rs. 390
Time frame: Till June expiry

Rationale

Volatility remained extremely high during the week as the Bank Nifty fell towards its sizeable Put base of 19500 and reverted sharply above 21000. Broad based participation was seen where apart from SBI and Kotak Mahindra Bank all banks performed well.

Throughout the week, additions were seen in OTM strike Puts. The IVs remained elevated. We feel a decline towards 30 levels can be seen. This will benefit option writers.

For details, click on the link below: https://www.icicidirect.com/mailimages/IDirect_BankNifty_19Jun20.pdf

Source : Equity Bulls

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