If bears out there still expect Nifty to drop, lets say by 400 points or so by April expiry. Here is an interesting strategy to consider.
First and foremost, loss is bare minimum.
Strategy set up –
Short Nifty futures (Apr) @ 7740
Long Nifty 7500 Call (Apr) @ 250
Short Nifty 6800 Put (June expiry) @ 26.50
Here is the payoff chart
Chart – Myfno.in
Yellow line – pay off 10 days from now
Blue line – April expiry
With IVs at 17 on April expiry, there is negligible loss. 10 days from now we are in profit if market starts falling.
The only risk is IVs let say jump to 25 plus levels in which case on expiry the June PE option value will spike