BUY 1600 CE 1 LOT
SELL 1700 CE 2 LOTS
Target Profit: Rs 3500
Stop Loss: Rs 1500
After a round of Short Covering, Stock is witnessing Fresh Longs. Break above Rs 1500 (Previously Heaviest Call) has opened up room up to Rs 1650. Since the stock has already run up a lot a Ratio Spread is deployed to limit the outflow.
Strategy: Nifty Call Ratio Spread
Buy 8150 CE
Sell 2 Lots 8350 CE
Target Profit: Rs 2500
Stop Loss: Rs 1000
Despite the move upwards Longs have been missing, some glimpse of it was seen on Monday. Head room remains open up to 8300-8400 (Call Congestion). Considering the move already in place and lack of lot of longs, Call Ratio spread cane be considered
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Shubham Agarwal is a head of Quantitative Research, Motilal Oswal Securities