Web exclusive: F&O trends and strategies for index stocks

Check out the F&O trends and strategies for select stocks with Shshank Mehta, Derivatives Strategist at Shah Investors' Home

Check out the F&O trends and strategies for index stocks such as SBI, Infosys, L&T and Tata Motors with Shshank Mehta, Derivatives Strategist at Shah Investors' Home:

Smartinvestor : Markets have taken a breather today amid profit taking at higher levels after the sharp gains recently. What is your call on the Nifty and the likely expiry for July futures?

Shshank Mehta : We observe strong support around 6000-6010 levels in Nifty Futures (Current Series). We believe a decisive close below 6000 today we may see Jul'13 Series expiring around 5920-5950. Else, the expiry will be in the range 6020-6050.

Smartinvestor : SBI is among the active stocks in the options segment today with contracts at strike prices of Rs 1,800-1900. What is your strategy for July options expiry?

Shshank Mehta : We are recommending a butterly at 1800 strike for SBIN. This can be done by SELL 1800 CE and SELL 1800 PE which will give a credit of Rs40. To safeguard from any wild movement, we will have to BUY 1850 CE and BUY 1750 PE. The spread will give an net credit of Rs 30 per units (Rs 3750 per lot basis).

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