Option Strategy : Call Ratio Spread
Buy 1 Lot 1160CE
Also Read
Sell 2 Lots 1200CE
Target Profit: Rs 4,000
Stop Loss: Rs 1,000
Rationale: Initiation of open interest in last week ahead of the expiry indicates short covering in the offing. On the higher side the Call congestion indicates head room open up to 1200. Considering the pullback nature of trade and limited days for expiry Call Ratio is deployed
Yes Bank
Option Strategy : Put Ratio Spread
Buy 1 Lot 740 PE
Sell 2 Lots 700 PE
Target Profit: Rs 4500
Stop Loss: Rs 1200
Rationale: The stock added shorts in the week of expiry. Call writing in higher strike may not let the stock move higher. On the other hand the Puts congestion indicates downside room up to 700.
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
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