Check out the trading strategies in select index stocks such as Bajaj Auto, Tata Steel, ONGC and TCS with Chetan Jain, Dy Manager (Derivatives Desk) at Anand Rathi Financial Services:
Smartinvestor: Markets have slipped in post noon trades after being range bound since early trades. What is your call on the Nifty options for Oct expiry?
Chetan Jain: Nifty has given sign of reversal from the crucial hurdle zone of 6170-6200 levels and till the time Nifty future is trading below this zone selling pressure may remain continue for coming days. Traders can buy slightly out of the money put option to hedge the long positions as well as for trading. Conservative traders can go with Bear Put Spread Strategy: by Buying 6100 Put@95; Sell 6000 put@60; max Risk: 35; Max Reward: 65; BEP: 6065
Smartinvestor: ONGC seems to be active in the options segment. The stock has remained rangebound in the past few sessions. What strategy can one deploy for Oct options expiry?
Chetan Jain: Today entire Oil & Gas sector was seeing good buying interest with aggressive long built up especially in CAIRN, ONGC, PETRONET stocks. Among these counters ONGC still holding the gains and looks attractive for fresh rally towards 290-295 levels in coming trading sessions. One can simply buy out of the money 290 call@4.5 ; Stop Loss 2.5 Target 10
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