 "F&O strategies for TCS, Vedanta: Shubham Agarwal")
TCS
Strategy : Modified Butterfly
Buy 2650 CE 1 LOT, Sell 2750 PE 2 LOTS, Buy 2800 CE 1 LOT
Target Profit : Rs 3500
Stop Loss : Rs 1500
Rationale:
TCS is in Long - Long Unwinding cycle with option congestion keeping the Risk Reward favorable. Headroom is open up to Rs 2750, while Rs 2500 is the expected floor. Upcoming results could push the implied volatility up which can be countered with Modified Butterfly
VEDANTA
Strategy : Long Put Butterfly
Buy 90 PE 1 LOT, Sell 85 PE 2 LOTS, Buy 80 CE 1 LOT
Target Profit: Rs 2200
Stop Loss: Rs 500
Rationale:
VEDL is in a Short-Short Covering cycle indicating negative bias. Option congestion indicates the heaviest strike and Hurdle at Rs 100. On the lower side Puts congestion remain relatively lower and distant. Considering relatively higher IVs Put butterfly is deployed.
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
Strategy : Modified Butterfly
Buy 2650 CE 1 LOT, Sell 2750 PE 2 LOTS, Buy 2800 CE 1 LOT
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Target Profit : Rs 3500
Stop Loss : Rs 1500
Rationale:
TCS is in Long - Long Unwinding cycle with option congestion keeping the Risk Reward favorable. Headroom is open up to Rs 2750, while Rs 2500 is the expected floor. Upcoming results could push the implied volatility up which can be countered with Modified Butterfly
VEDANTA
Strategy : Long Put Butterfly
Buy 90 PE 1 LOT, Sell 85 PE 2 LOTS, Buy 80 CE 1 LOT
Target Profit: Rs 2200
Stop Loss: Rs 500
Rationale:
VEDL is in a Short-Short Covering cycle indicating negative bias. Option congestion indicates the heaviest strike and Hurdle at Rs 100. On the lower side Puts congestion remain relatively lower and distant. Considering relatively higher IVs Put butterfly is deployed.
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