BUY 55PE 1 LOT at 4.25
SELL 50PE 2 LOTS at 2.7
BUY 45PE 1 LOT at 1.5
Target Profit: Rs 2500
Max. Loss: 700
The stock is in short - short covering cycle.
Trading below the lower band opens up the immediate downside of about ~20%.
Considering the high volatility it makes sense to trade with a Put Butterfly.
BPCL OTM Bull Call Spread
BUY 880 CE 1 LOT
SELL 900 CE 1 LOT
Target Profit: Rs 6500
Stop Loss: Rs 3000
BPCL future still remains in Long-Long Unwinding cycle.
Heaviest Put still remains at 840 indicating expected floor around here.
Bargain hunting in 860 Call on Friday indicates bargain hunting attempts.
Considering the market set up it makes sense to be nimble footed and trade with OTM Bull Spread.
Shubham Agarwal is a head of Quantitative Research, Motilal Oswal Securities
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