Strategic Move: Short Strangle Position on SBI Cards Stock

Published on September 6, 2025

In the realm of financial markets, the week of September 6, 2025, presents an interesting opportunity for traders. Two significant strategies have been recommended for the day: a short strangle strategy on SBI Cards options and a position on Federal Bank 195-call.

For SBI Cards and Payment Services, the spot price on Friday was ₹791.45. Over the last two weeks, open interests have witnessed a strong build-up, but in the last two days, there has been a marginal decline. The immediate support levels are at ₹760 and ₹725, while the nearest resistances can be found at ₹846 and ₹939. SBI Cards currently trades within a range of ₹650-1000.

A trader, unnamed in our sources, has opted for a short strangle strategy on SBI Cards options for September 6, 2025. The strategy involves selling both out-of-the-money call and put options at strike prices of 860 for the short call and 720 for the short put. This strategy aims to benefit from expected range-bound price movement and time decay around those strike levels. However, it's important to note that there is a risk of loss in trading options, and this strategy is no exception.

The breakeven prices for this short strangle trade on SBI Cards options are ₹862.85 and ₹717.15. If the option premium moves past ₹3.50, the stop-loss is revised to ₹3. The maximum profit from this strategy is ₹2,280.

On the other hand, the recommendations for Federal Bank 195-call are based on technical analysis and F&O positions. The target for this position is ₹4.5, and the recommended hold is with a stop-loss at ₹2.50. The position for Federal Bank 195-call is to be retained for this week. It's crucial to remember that there is a risk of loss in trading Federal Bank 195-call options.

This article provides trading advice and is not an advertisement. Always conduct your own research and consider your risk tolerance before making any investment decisions. Happy trading!