F&O strategies for Bank Nifty, Siemens: Shubham Agarwal

Bank Nifty

Option Strategy: Bear Spread

BUY 1 LOT 16500 PE

& SELL 1 LOT 16000 PE

 

Max Profit : Rs 12000*

Max Loss: Rs 3000

*There would be trading profits in case of fall during the expiry

Rationale: Bearish continuation pattern indicates Bank Nifty could remain in Short- Short Covering Cycle.. Breach of 17300 could now Trigger meaningful Fall.. Considering the event in front it makes sense to trade with Bear Spread

 

Siemens

Options Strategy: Long Put

 

Buy 1250 PE SL 16 TGT 52

 

Rationale: The stock has been in short – Short unwinding cycle since last 2 expiries.. Fresh shorts indicate expectation room for further fall. ..The stock has room on the downside up to Rs 1200 as indicated by the Options congestion

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

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