Option Strategies & Probable Bank Nifty movement on 1st of April 2025

 

Expecting probable  expected range-bound movement of Bank Nifty between 51,200 (support) and 51,800–52,000 (resistance), 

 the following option strategies may be considered to capitalize on the volatility while limiting risk:

1. Iron Condor (Best for Low-Moderate Volatility)

   - Strategy:

 Sell OTM Call + Sell OTM Put + Buy Higher Call + Buy Lower Put  

   - Execution:

     - Sell 51,800 Call (Resistance)  

     - Sell 51,200 Put (Support)  

     - Buy 52,000 Call (Higher Strike for Hedge)  

     - Buy 51,000 Put(Lower Strike for Hedge)  

   - Risk/Reward:Limited profit (premium received) with limited risk.  

   - Best For: Expecting sideways movement with volatility contraction.

 2. Strangle (Best for High Volatility Breakout)

   - Strategy: Buy OTM Call + Buy OTM Put  

   - Execution:  

     - Buy 51,800 Call (Breakout above resistance)  

     - Buy 51,200 Put(Breakdown below support)  

   - Risk/Reward: Unlimited profit if breakout happens, limited loss (premium paid).  

   - Best For: Expecting a sharp move but unsure of direction.

3. Bull Call Spread (If Mildly Bullish)

   - Strategy: Buy Lower Call + Sell Higher Call  

   - Execution:  

     - Buy 51,500 Call 

     - Sell 52,000 Call  

   - Risk/Reward: Limited profit (difference between strikes - net premium) & limited risk.  

   - Best For: Expecting a moderate rise but not beyond 52,000.

4. Bear Put Spread (If Mildly Bearish)

   - Strategy: Buy Higher Put + Sell Lower Put  

   - Execution:  

     - Buy 51,500 Put  

     - Sell 51,000 Put 

   - Risk/Reward:Limited profit (strike difference - net premium) & limited risk.  

   - Best For: Expecting a moderate decline but not below 51,000.

5. Butterfly Spread (For Tight Range)

   - Strategy: Sell 2 ATM Calls + Buy 1 ITM Call + Buy 1 OTM Call  

   - Execution:  

     - Buy 51,200 Call 

     - Sell 51,500 Calls (x2) 

     - Buy 51,800 Call

   - Risk/Reward:Max profit if Bank Nifty expires near 51,500.  

   - Best For:Expecting price to stay very close to mid-range (51,500).

 Final Recommendation:

- If expecting sideways movement → Iron Condor(Best balance of risk-reward).  

- If expecting volatility expansion → Strangle (For breakout trades).  

- If mildly bullish/bearish → Vertical Spreads (Bull Call / Bear Put).  

Anish Jagdish Parashar

Indirect tax india research 

Disclaimer: Content above reflect personal views of the author. For investment and trading purpose consult your financial advisor.