Kotak Bank January Expiry | Kotak bank hedging strategies
Kotak Bank January Expiry
Kotak Bank January Expiry, In Kotak Bank, our view is that it could be in the range-bound of 1763 to 1878. so we create a simple strategy for it Max Risk: 24800 if Expiry below 1700, Max Profit: 23200
Short 1820 CE near 42
Short 1820 PE near 35
Buy 1900 CE near 14
Buy 1700 PE near 5
Max Risk: 24800 if Expiry below 1700
Max Profit: 23200
Profit Range: If Kotak Bank Expiry in between 1763 to 1878.
Explanation We go short 1820 call because we think that Kotak Bank will not expire above 1820, again we short 1820 Put because we think that Kotak Bank will expiry above 1820, which means our view is in range-bound that Kotak Bank expiry comes near to 1820, again we buy 1900 call and 1700 put for hedge our position for to save form unexpected movement in the market.
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