Markets could take a breather: Shshank Mehta

Check out the F&O trends in select stocks with Shshank Mehta, Independent Derivative Analyst

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Tulemino Antao Mumbai
Last Updated : Jul 02 2014 | 2:43 PM IST
Check out the F&O trends in select stocks such as Maruti, DLF, Sesa Sterlite, Gail, Jindal Steel, Wipro with Shshank Mehta, Independent Derivative Analyst



SmartInvestor : Markets are trading near their record highs as of now. The Nifty continues to hold 7,700 levels. What strategy can traders adopt for July options?
    

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Shshank Mehta : Consider selling 1 Put Option at 7700 strike; 1 Call Option at 7750 strike and buy 2 Put Options at 7650 strike. The spread will yield normal profit if Nifty trades stable to lower and can give super normal profits in the event of a major fall or correction.
    
SmartInvestor : Maruti is active in the options segment today. What is your strategy for the auto major for July options?
    
Shshank Mehta : Consider buying 1 Call Option at 2700 strike and selling 1 Call Option at 2850 strike. Bull spreads are always a prudent option in rallied-up markets. My view on MARUTI will remain bullish till it does close below 2425.
  
SmartInvestor : DLF is also witnessing action in the options segment today. What is your strategy for the real estate major for July options?
    
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First Published: Jul 02 2014 | 2:35 PM IST

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