F&O strategies for TCS, Vedanta: Shubham Agarwal

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

TCS

Strategy : Modified Butterfly


Buy 2650 CE 1 LOT, Sell 2750 PE 2 LOTS, Buy 2800 CE 1 LOT

Target Profit       : Rs 3500

Stop Loss             : Rs 1500

 
Rationale:

TCS is in Long - Long Unwinding cycle with option congestion keeping the Risk Reward favorable. Headroom is open up to Rs 2750, while Rs 2500 is the expected floor. Upcoming results could push the implied volatility up which can be countered with Modified Butterfly

 

VEDANTA
 

Strategy : Long Put Butterfly

 

Buy 90 PE 1 LOT, Sell 85 PE 2 LOTS, Buy 80 CE 1 LOT

Target Profit: Rs 2200

Stop Loss: Rs 500


Rationale:

VEDL is in a Short-Short Covering cycle indicating negative bias. Option congestion indicates the heaviest strike and Hurdle at Rs 100. On the lower side Puts congestion remain relatively lower and distant. Considering relatively higher IVs Put butterfly is deployed.


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