Derivatives Trading Idea Of 8 June 2020


Derivatives Trading Idea

* Index overall trend is positive and supports are gradually shifting higher

* Maximum Call OI is seen at 10000 then 10500 strike which could restrict its upside move

* Put OI concentration is seen at 9500 then 9000 strike which could hold it on decline

* Thus, suggesting Bull Call Spread to gain from positive to range-bound bias

* Net premium paid: 128 points BEP : 10128

* Max risk: 128 points (Risk of Rs. 9600/- if it remains lower)

* Overall profit if it expires above 10128

* Max reward: 172 points (Reward of Rs.12,900/- if it expires above 10300 zones)