F&O strategy for Asok Leyland

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

NIFTY
OPTION STRATEGY: IRON BUTTERFLY

Sell Dec 7800 CE & PE 1 Lot

Buy Dec 8000 CE 1 Lot

Buy Dec 7600 PE 1 Lot

Target Profit: Rs 6,000 

Stop Loss: Rs 3,000

Rationale:

Post the event massive fall in India VIX indicates expectation of lack of movement in the index. Option Open Interest standing indicates gyration in the index to be within 7600-8000. With expectation of such range for next few sessions trading profits can be earned by deploying Nifty Iron Butterfly

ASHOK LEYLAND

OPTION STRATEGY: CALL RATIO SPREAD

Buy 1 Lot Dec 95 CE;

Sell 2 Lots Dec 100 CE

Target Profit: Rs 5,500

Stop Loss : Rs 1,200

Rationale:

The stock is in long-long unwinding cycle and is close to its heaviest written Put creating a case for going long. On the higher side heaviest Call is distant 100, creating lot of headroom. Considering the move already in place, Call ratio is recommended to counter time decay in case of any consolidation before next leg up.

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