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F&O strategy: Nandish Shah recommends Bull Spread on Nifty; check details
Business Standard 1 hr ago·31 Jul 2026, 2:16 am
Stocks Business Standard
Nandish Shah has recommended a Bull Call Spread strategy for the Nifty 50 index. This options strategy involves buying a call option with a lower strike price while simultaneously selling a call option with a higher strike price. The goal is to profit from a moderate rise in the market while keeping the cost of the trade low.
This approach is generally considered less risky than buying a plain call option outright. It caps the potential profit but also reduces the capital required to enter the trade. Investors might choose this to express a bullish view while managing their risk exposure.
Investors should watch the Nifty's movement closely. If the index moves above the higher strike price, the trade will generate maximum profit. Conversely, if the index stays below the lower strike price, the maximum loss is limited to the premium paid for the strategy.
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- Category: Stocks.
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