 "F&O strategies for TVS Motor, Coal India: Shubham Agarwal")
TVS MOTOR
Strategy : Long Call Butterfly
BUY 1 LOT 280 CE , SELL 2 LOTS 290 CE, BUY 1 LOT 300 CE
Target Profit: Rs 9,200
Stop Loss: Rs 4,000
Rationale: The stock has added lot of Longs in last expiry. Current option standing indicates, post a big move the stock could consolidate within Rs 260-270 before further movement. Possible consolidation and big move above Rs 270 could be capitalized via Long Call Butterfly
Coal India
Strategy : Bear Put Spread
BUY 310 PE
SELL 300 PE
Target Profit : Rs 5,500
Stop loss : Rs 2,500
Rationale: The Stock has a lot of trapped Longs, which could create unwinding pressure.
Coal India is already trading below the heaviest.Put and lack of writing in lower strikes keeps the downside wide open. Considering the low volatility and full expiry ahead Bear Put Spread suits best to trade the view.
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
