F&O strategies for HDFC, Arvind: Shubham Agarwal

Check out a few F&O strategies from Shubham Agarwal of Motilal Oswal Securities

ARVIND
OPTION STRATEGY: PROTECTED CALL RATIO:

BUY  1 LOT DEC 320 CE
SELL 2 LOTS DEC 330 CE    
 BUY 1 LOT DEC 340 CE

TARGET PROFIT: Rs 3600

STOP LOSS: Rs 1300

Arvind has added Longs in last expiry and a sustained breach of consensus  hurdle of 310 opens up further headroom up to 330. Considering the move already in place, we may see a halt before further leg up, hence a Protected Call Ratio spread is recommended to protect against time decay

HDFC
OPTION STRATEGY: CALL BACK RATIO SPREAD
SELL DEC 1260 CE                            
 BUY 2 LOTS DEC 1300 CE

TARGET PROFIT: Rs 2400

STOP LOSS: Rs 600

TIME STOP LOSS : 2 Sessions

Move in last couple of sessions in HDFC has opened up headroom up to 1300 indicated by upward shifts by Call writers. Considering the upcoming event and the possibility of volatility. One would benefit from volatility in upward direction by deploying Back Ratio Spread, whiteout being much affected by negative outcome.

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Shubham Agarwal is a head of Quantitative Research, Motilal Oswal Securities