Check out the F&O trends and strategies for select stocks such Reliance Comm, Larsen & Toubro, Titan Ind, Sun TV and Sesa Sterlite with Chetan Jain, Dy Manager Derivatives Desk at Anand Rathi:
SmartInvestor : Markets seems to be remain volatile in the past few sessions. What is your call on the Nifty for Oct options expiry this week?
Chetan Jain : Nifty future has been consolidating in a thigh range at higher levels and waiting for some directional cues with both Bulls & Bears fighting to get their grip on the markets. Ahead of RBI Policy, FED Meet and Expiry markets are likely to become highly volatile this week and we are advising traders to remain cautious and maintain strict stop levels while trading. One can go with Long strangle strategy in the absence of any directional cues at current juncture, this strategy will give be in benefit if market gives any side directional move of 100-150 points before this expiry. Buy 6100 put@33 & buy 6200 call@35 ; Total Risk: 68; Traders can keep stop of 20 points on premiums paid and hold for upside target of 100 levels on premiums.
SmartInvestor : Rel Comm seems to be active in the options segment today. What strategy can one adopt for Oct options expiry?
Chetan Jain : Rcom after six weeks of consolidation at higher band has given breakdown on lower side and likely to continue its momentum on lower side. Fresh built up of shorts are also supporting the negative view. One can buy plain vanilla put option of 140 strike price @ 1.6 to hedge the long positions as well as for trading with limited risk.
For detailed transcript please CLICK HERE
