F&O strategies for Infosys, ICICI Bank

Check out a few F&O strategies from Shubham Agarwal of Motilal Oswal Securities

INFOSYS
OPTION STRATEGY: PROTECTED PUT RATIO

BUY 1 LOT DEC 1060 PE
SELL 2 LOTS DEC 1040 PE        
BUY 1 LOT DEC 1020 PE

TARGET PROFIT: Rs 4,500                    
STOP LOSS: Rs 1,000
 

Rationale:

 Infy is in short-short covering cycle and in a pull-back mode, proximity to the heaviest Call of 1100 seem to have halted the pull back.  Initiation of shorts towards the weekend could push the stock towards lower end of 1040. Considering the second half of the expiry Protected Put ratio is recommended  

ICICI BANK
OPTION STRATEGY: Call Ratio

 

BUY 1 LOT DEC 260 CE
SELL 2 LOTS DEC 270 CE

TARGET PROFIT: 5,000                          
STOP LOSS: Rs 20,000
 

Rationale:

 ICICI Bank saw bargain hunting after short covering in past few sessions. Although the stock is not in a Long _Long unwinding cycle, the bargain hunting has led to short unwinding in 260 Call. This could create marginal headroom up to 270 for the remainder sessions of this expiry.

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, the spokesperson or his relatives, do not have financial interest in the securities mentioned above. 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 a head of Quantitative Research, Motilal Oswal Securities