F&O strategy for Siemens: Shubham Agarwal

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

NIFTY
OPTION STRATEGY:  Hedge via Put Butterfly

BUY 1 LOT DEC 7900 PE , SELL 2 LOTS DEC 7600 PE & BUY 1 LOT 7300 PE

TARGET PROFIT: Rs 9,000    
STOP LOSS: Rs 3,100

Although short covering has neutralized the bearish bias, Nifty still remains in short-short covering cycle. Considering lack of longs and Heavy build up in calls as near as Rs 8,000 strike advocates creation of hedge. Considering Long Expiry Put butterfly is recommended to reduce premium out flow, keeping the losses limited

SIEMENS
OPTION STRATEGY: LONG PUT

BUY 1150 PE
STOP LOSS: Rs 8.0
TARGET: Rs 30.0

 

Siemens has been in short- short unwinding cycle. Stock has sustained below the consensus floor at Rs 1,200 (indicated by high open interest in Put), which opens up further downside. Since there is no meaningful writing in lower strike Puts, the negative move can accentuate and hence is recommended to be traded with Long Put.

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