F&O strategy for HDFC Bank: Shubham Agarwal

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

NIFTY
OPTION STRATEGY: Hedge via put Butterfly

BUY 1 LOT DEC 7800 PE

SELL 2 LOTS DEC 7600 PE

BUY 1 LOT DEC 7400 PE

TARGET PROFIT: Rs 3800

STOP LOSS: Rs 1500

Call writing post the event does indicate expectation of big hurdles in place for Nifty on the higher side. On the other hand the activity on the Lower Puts remain awfully muted, which is scary. For overall exposure also one should resort to hedge in the Index via Put Butterfly

HDFC BANK 
OPTION STRATEGY: LONG PUT

BUY HDFCBANK 1060 @ 14.50 PE
TARGET: Rs 30
STOP LOSS:Rs 6.80 
 

The stock is in Short-Short Covering cycle, which keeps the outlook negative. With heaviest put of Rs 1060 in close proximity, slight further weakness could trigger a big move, which is recommended to be traded by going long in a put.

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