Web exclusive: F&O trends and strategies

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

Check out the F&O trends and strategies for select stocks such as PNB, Idea Cellular, Century Textiles and Siemens with Chetan Jain, Deputy Manager Derivatives Desk at Anand Rathi Financial Services:

Smartinvestor : Markets are trading marginally lower after being range bound since early trades on the first day of AUG series. How have the overall rollovers been? What is your take on the Nifty options?

Chetan Jain : NIfty on the first day of August expiry wintesing selling pressure on the back of weaker global cues coupled with huge selling in Banking space. NIfty has seen good rollover with around 76% Vs 48% in previous months suggesting longs are still in the system with carrying positions for this series well as with cost of carry of around 0.62%. Nifty on expiry basis has seen increase in OI(1.87Cr) by 46.5% along with rise in price by 4.5% indicating longs in the system. Nifty future has strong support area around 5900 area if it hold then chances of bounce back may be seen from current levels. Risky traders can play with 6000 call option with strict stop loss of 5890 in future.

Smartinvestor : PNB is among the active stocks in the options segment today with contracts at prices ranging from Rs 580-640. What strategy can one deploy for the stock for Aug options expiry?

Chetan Jain : POst result the stock has fallen sharply with breaking the crucial support zone around 610-615 levels. Now till the time it is holding below these levels selling pressure may remain continue in it, on derivative front It has seen huge built up of short positions with increase in OI by around 40% on intraday basis. Those holding in cash can hede the stock by buying out of the money Put of 540 strike price. Traders can go for sell at any bounce near 600 levels for fresh short positons

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