 "F&O strategies for L&T, Ashok Leyland: Shubham Agarwal")
L&T
Option Strategy: Call Ratio Spread
BUY 1600 CE 1 LOT
SELL 1700 CE 2 LOTS
Target Profit: Rs 3500
Stop Loss: Rs 1500
Rationale:
After a round of Short Covering, Stock is witnessing Fresh Longs. Break above Rs 1500 (Previously Heaviest Call) has opened up room up to Rs 1650. Since the stock has already run up a lot a Ratio Spread is deployed to limit the outflow.
Ashok Leyland
Option Strategy: Long Call Butterfly
BUY 1 LOT 95 CE , SELL 2 LOTS 100 CE
BUY 1 LOT 105 CE
Target Profit : Rs 7500
Stop loss : Rs 3200
Stock is in Long- Long Unwinding cycle and has longs early on this expiry. Option Congestion indicates expiry range of 90-100 keeping the Risk-Reward favorable. Considering relatively higher IVs Call butterfly can be deployed
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.
Shubham Agarwal is a head of Quantitative Research, Motilal Oswal Securities
Option Strategy: Call Ratio Spread
BUY 1600 CE 1 LOT
Also Read
SELL 1700 CE 2 LOTS
Target Profit: Rs 3500
Stop Loss: Rs 1500
Rationale:
After a round of Short Covering, Stock is witnessing Fresh Longs. Break above Rs 1500 (Previously Heaviest Call) has opened up room up to Rs 1650. Since the stock has already run up a lot a Ratio Spread is deployed to limit the outflow.
Ashok Leyland
Option Strategy: Long Call Butterfly
BUY 1 LOT 95 CE , SELL 2 LOTS 100 CE
BUY 1 LOT 105 CE
Target Profit : Rs 7500
Stop loss : Rs 3200
Stock is in Long- Long Unwinding cycle and has longs early on this expiry. Option Congestion indicates expiry range of 90-100 keeping the Risk-Reward favorable. Considering relatively higher IVs Call butterfly can be deployed
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.
Shubham Agarwal is a head of Quantitative Research, Motilal Oswal Securities
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