Nifty likely to swing in the 9800- 10700 range

Analyse option strategies on Protrader with the added benefit of discount broking

 

Nifty reversed losses after briefly sliding below the 10k mark on March 23rd this year. The primary index has since gained about 2 percent from the recent lows. Likewise, Nifty April futures bounced back from within striking distance of the 10k mark and is holding near key resistances at 10250-10275. A breakout could lead to a short-term rally with the Index futures likely to target 10650- 10700 while on the downside, supports are firmly placed around 9800- 9850. With the Index currently mid- way between supports and resistances, positional traders are likely to find it challenging to time entries unless the Index settles above 10275.

Risk averse traders can look to buy plain vanilla call/put options at the key supports/ resistances. However, traders looking for short- medium term option strategies can take a look at a few of them suggested here, analyse, paper trade the strategies on the Compositedge- Protrader terminal before applying them in real- time markets.

Strategy-1
Risk averse traders expecting Nifty futures to hold above 9800 until expiry on April 26th 2018
Short a 9800 put @ 59.45
Long a 9700 put @ 44.3
Max. Profit: 14.30
Max. Loss: 85.70


Source: Compositedge- Protrader platform

 

Strategy-2
Risk averse traders expecting Nifty futures to hold below 10300 until expiry on April 26th 2018
Short a 10300 call @ 96.65
Long a 10400 call @ 60.65
Max. Profit: 36
Max. Loss: 64


Source: Compositedge- Protrader platform

 

Strategy-3
Traders expecting Nifty futures to swing between 9800- 10700 until expiry on April 26th 2018 and are willing to risk in the event of the Index breaking out of the range
Short a 10600 put @ 452.35
Short a 9900 call @ 334.05
Max. Profit: 86.40
Max. Loss: Unlimited, if Nifty breaks out of the 9800-10700 range


Source: Compositedge- Protrader platform

 

The Protrader platform comes with an in-built Option Analyser tool which allows traders to view the pay-off diagram for the corresponding strategies in real-time, paper-test the strategies, make necessary adjustments based on Implied Volatility and time to expiry. Traders can also use the probability calculator to check the possibility of prices breaching pre-defined thresholds or analyse the implied volatility smile; using the Vanna-Volga function, before placing trades.

 

About the platform-
The Protrader platform comes with a host of features that include multiple charts types with multiple timeframes, backed with a large quantity of historical data, scalper panel comprising of a combination of time & sales, market depth, impulse and overlay indicators for quick manual scalping, mouse trading for one-click order placements from the chart, matrix and the scalper panels and a fully integrated algo studio to execute fully automated strategies on C# using the .NET framework.

Protrader is launched by Compositedge, a leading discount broker in India based out of Bangalore. The platform is currently accessible FREE OF COST for all categories of traders for a limited period only.

Sign-up now to practise on the test version of the platform or open an account to access the live terminal.

 

Compositedge is a leading discount broker and provider of algo trading solutions for retail customers in India for the last 22 years. Headquartered in Bangalore, we provide the Internationally acclaimed Protrader platform, which comprises of charts, scalper, matrix, grid,market-depth and options master in addition to a ready to implement algo platform. We combine discount broking and algo trading solutions to ensure all our retail clients experience the finest trading amenities at affordable costs.