Web exclusive: F&O trends and strategies

Check out the F&O trends and strategies for select stocks with Chetan Jain, Asst Manager Derivatives Desk at Anand Rathi

Check out the F&O trends and strategies for select stocks such as SBI, TCS, Yes Bank, M&M and Lupin with Chetan Jain, Asst Manager Derivatives Desk at Anand Rathi:

Smartinvestor : Markets have recovered after a weak start. Meanwhile, the Nifty is seen hovering around 5,950 levels. What is your call on the Nifty and strategy traders can deploy for June options?

Chetan Jain : NIfty after a recent fall is now witnessing support based buying interest around 5900 area where maximum put OI is concentrated. TOday if it sustains baove 5980 levels then positive monetum may remain continue towards 6100 zone. We advise to go for 6100 call option buy for june series @40 Stop loss 20 Target 100 levels in coming days.

Smartinvestor : SBI continues to remain active in the options segment. The stock has registered contracts at various strike prices betwen Rs 2,050 and Rs 2,200 both on the put and call options. What strategy can one deploy for June options expiry?

Chetan Jain : Stock has seen good accumulation at lower levels around 2030-2070 levels with volume activity suggesting pulllback rally may continue in coming days. TO play bounce back on safer side we advise to go either slighly out of the money i.e 2100 Call option naked buy@55 Stop loss 35 Target 100 . Tjose who want to play with option strategy can go for Bull Call Spread 2100 vs 2200 eg Buy 2100 Call@ 55 ; Sell 22000 Call@30 ; Max Risk: 25 ; Max Reward : 75 BEP 2125 ; this is a attractive risk reward strategy with limited risk and reward know in advance.

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