F&O strategies for L&T, Nifty: Shubham Agarwal

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

L&T

Strategy: LT 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.   

 

NIFTY

Strategy: Nifty Call Ratio Spread


Buy 8150 CE

Sell 2 Lots 8350 CE

Target Profit: Rs 2500

Stop Loss: Rs 1000

 

Rationale:

Despite the move upwards Longs have been missing, some glimpse of it was seen on Monday. Head room remains open up to 8300-8400 (Call Congestion). Considering the move already in place and lack of lot of longs, Call Ratio spread cane be considered
 
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Shubham Agarwal is a head of Quantitative Research, Motilal Oswal Securities