 "F&O strategies for HDFC, Arvind: Shubham Agarwal")
ARVIND
OPTION STRATEGY: PROTECTED CALL RATIO:
OPTION STRATEGY: PROTECTED CALL RATIO:
BUY 1 LOT DEC 320 CE
SELL 2 LOTS DEC 330 CE
BUY 1 LOT DEC 340 CE
SELL 2 LOTS DEC 330 CE
BUY 1 LOT DEC 340 CE
TARGET PROFIT: Rs 3600
STOP LOSS: Rs 1300
Arvind has added Longs in last expiry and a sustained breach of consensus hurdle of 310 opens up further headroom up to 330. Considering the move already in place, we may see a halt before further leg up, hence a Protected Call Ratio spread is recommended to protect against time decay
TARGET PROFIT: Rs 2400
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STOP LOSS: Rs 600
TIME STOP LOSS : 2 Sessions
Move in last couple of sessions in HDFC has opened up headroom up to 1300 indicated by upward shifts by Call writers. Considering the upcoming event and the possibility of volatility. One would benefit from volatility in upward direction by deploying Back Ratio Spread, whiteout being much affected by negative outcome.
Move in last couple of sessions in HDFC has opened up headroom up to 1300 indicated by upward shifts by Call writers. Considering the upcoming event and the possibility of volatility. One would benefit from volatility in upward direction by deploying Back Ratio Spread, whiteout being much affected by negative outcome.
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Shubham Agarwal is a head of Quantitative Research, Motilal Oswal Securities