Check out the F&O trends in select stocks such as Kotak Bank, Cipla, NTPC, Hindalco, BPCL with Shshank Mehta, Independent Derivative Analyst:
SmartInvestor : Markets have slumped in noon trades following the escalating tensions in Iraq. However, the Nifty seems to be finding support around 7,540-7,550 levels as of now. What is your call on the benhcmark Nifty for June options expiry in the week ahead?
Shshank Mehta : Nifty to trade higher and move up will have to give a decisive close above 7610, till then my view continues to be bearish from trading stand-point. I believe trader with bullish view should close their positions and buy Put Options.
SmartInvestor : Kotak Mahindra Bank has been active in the options segment today. What is your strategy for June options expiry?
Shshank Mehta : I observe KOTAKBANK to gain some momentum and trade stable to bearish. I advise traders to go for a composite stangle. Consider selling one Call Option at 960 strike and one at 980 strike; also, sell one Put Option at 900 strike. The strategy will max profit of Rs 31 * 500 (lot size) if KOTAKBANK expires anywhere between 900-960.
SmartInvestor : Cipla is also active in the option segment with contracts at strike prices at 430 and 450. What strategy can one deploy for June options expiry?
Shshank Mehta : With market reversal on the cards, bulls will look at parking money in the defensives. CIPLA will be a good bet for going long (for traders with a bearish view on the market). Consider buying a Call Option at 420 strike and selling a Call Option at 470 strike. The spread is adequate to capture rallly in CIPLA from current levels of >Rs50
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