 "F&O strategy for SBI & Hindalco")
Strategy: State Bank of India BULL CALL SPREAD
BUY 260CE
SELL 280CE
TARGET PROFIT = 8000
STOP LOSS = 2600
Strategy: Hindalco LONG CALL
BUY 85CE BETWEEN 2.5-3.5
PREMIUM TARGET =10
STOP LOSS= 1
Most of the Metal Stocks are at the Long term support. With large amount of shorts and price damage already in place, Short covering seems in the offing. This can be best traded with a 85 Strike Long Call.
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 and its associates have a financial interest in the securities mentioned above however they do not have actual/ beneficial ownership of 1% or more securities of the subjecct company at the end of Jan 2015. The spokesperson or his relatives, do not have a financial interest.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 Head - Quantitative Research at Motilal Oswal Securities
BUY 260CE
SELL 280CE
TARGET PROFIT = 8000
STOP LOSS = 2600
Also Read
With Option congestion bounds being placed at 250 and 280 sets up a favorable risk to reward ratio for maintaining a positive stance. Hence a known loss strategy like ‘Bull Call Spread’ can be deployed.
Strategy: Hindalco LONG CALL
BUY 85CE BETWEEN 2.5-3.5
PREMIUM TARGET =10
STOP LOSS= 1
Most of the Metal Stocks are at the Long term support. With large amount of shorts and price damage already in place, Short covering seems in the offing. This can be best traded with a 85 Strike Long Call.
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 and its associates have a financial interest in the securities mentioned above however they do not have actual/ beneficial ownership of 1% or more securities of the subjecct company at the end of Jan 2015. The spokesperson or his relatives, do not have a financial interest.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 Head - Quantitative Research at Motilal Oswal Securities