Buy Oct 340 PE
Sell Oct 320 PE
Target Profit: Rs 5000
Stop Loss: Rs 2500
The stock is in short - short unwinding structure which builds expectation of a down move. Bharti has started trading below the consensus floor around 350, opening up room on the downside. The view can be traded with a Bear Spread of next month expiry.
Strategy : Long Put
Buy OCT 240PE
Target Profit : Rs 18
Stop Loss : Rs 8
The stock has seen reaction from congested Call strike (expected upper bound). SBI has also added shorts in Tuesday’s trade. The move an extend in the near term and the same can be traded with a Long Put.
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Shubham Agarwal is a head of Quantitative Research, Motilal Oswal Securities