Synopsis
The ladder is implemented by buying one call option at 32,000 level and selling two calls at 32,500 and 33,000 with the view of a 1,000-1,200 point rise in the index this month from Wednesday closing.
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Abhishek Karande, CMT senior analyst, Reliance Securities, expects HDFC Bank, ICICI, Axis and SBI to drive the Bank Nifty to a new high of 33,000 this month.
Mumbai: Rich traders could initiate an options strategy on Bank Nifty which ensures gains whether the index rises or falls. The trader gains irrespective of market direction since she receives a credit by initiating the strategy.
The strategy called Bull Call Ladder can be initiated on expectation that the Bank Nifty would break past its record high of 32,613.1 made on December 30, 2019 in the current derivative series which expires on January 28. The index closed at 31,797.90 on Wednesday, just 2.6 per cent short of the all-time high.