SmartInvestor : Markets have remained range bound since early trades today. The Nifty has maintained levels of over 6,100. What is your call on the benchmark for Feb options?
Shshank Mehta : I observe writer in Call Options holding ground at 6200 strike hinting that the traders see upside limited to 6200 levels. I would recommend, however, that market is getting ready for a upmove with a target of 6350. A prudent way to trade this patience testing narrow range market is to buy Call Options at 6300 strike for Mar'14 Series and wait for the upmove to take place.
SmartInvestor : Infosys is among the top gainers today. The stock is active in the options segment. What is your take for Feb options?
Shshank Mehta : INFY is seeing a bout of short covering. The options data for INFY is indicating that the Feb'14 Futures may expire around 3800 levels or above. A simple bull call spread would a be a way to capitalize this view. This can be done by Long 1 lot Call Option at 3700 and Short 1 lot Call Option at 3800.
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