Nifty in overbought situation; use any dip to buy July call options: Mitesh Thacker

In a chat with ET Now Mitesh Thacker, Technical Analyst, miteshthacker.com, talks about futures and options strategies one may adopt in the days to come.

ET Now: Would you use the options route to play the next couple of days, in case you believe that the market is likely to go up? May be, you could sell some of the put options on Nifty or Bank Nifty as well. Is there anything you are looking of that that sort?

Mitesh Thacker: Selling into 8,300 put option could be good for Nifty. But, if you are doing it for June expiry, you might not get much premium. So, my idea would be to possibly wait for the some kind of intraday dip to happen and then buy aggressively into the call options for July expiry. That could be a good strategy. One may also wait for the Bank Nifty to start getting past 18,450. If that happens, then one can buy into 18,500-strike call for July.

If somebody wants to trade with lesser premium, even buying July Bank Nifty at 18,800 call option could be a good strategy over here. The idea is to be positive, but you might want to just time it out a little bit, given the fact that today is the eighth consecutive day of upside. That is the only worrying factor. We are quite overbought on the intraday charts, but a 50-70 point of a dip or may be a one-two day kind of subdued market would be a good opportunity to buy into options on the upside.