F&O strategies for ICICI Bank, TCS: Shubham Agarwal

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

ICICI BANK
Option Strategy: Bull Call Spread

BUY 1 LOT DEC 270 CE
Sell 1 LOT DEC 280 CE

TARGET PROFIT: Rs 5,000

STOP LOSS: Rs 2,000
 

Rationale:

Stock has been holding on to the consensus floor (heaviest Put) of 260. There has been attempts of bargain hunting longs in Thursday’s trade, which creates expectation of further move up. The head room remains open till 280 but since we are taking chance on initial longs it is recommended to deploy moderately bullish strategy of Bull spread with slightly higher strikes  

TCS
Option Strategy: Call Ratio Spread

BUY 1 LOT DEC 2450 CE      
SELL 2 LOTS DEC 2550 CE

TARGET PROFIT: Rs 2,200

STOP LOSS: Rs 950
 

RATIONALE:

Despite the proximity Puts in 2300 has been holding strong expecting a halt in the fall and a pull back. Price action suggests a short covering move may be on cards. Expecting this move to fizzle out at maximum 2450-2500, a ratio spread is recommended.

Disclaimer: Motilal Oswal Securities ( MOSL ) is regulated by the Securities and Exchange Board of India ("SEBI") and is licensed to carry on the business of broking, depository services and related activities. MOSL is in the process of getting registered under SEBI - Research Analyst Regulations. MOSL, the spokesperson or his relatives, do not have financial interest in the securities mentioned above. The spokesperson has not served as a director, employee or officer at the subject company in the last 12 months. MOSL or its associate might be involved in market making for the subject company or have potential conflict of interest.

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