Sell 2 Lots 7500 PE
Buy 7200 PE
Target Profit: Rs 4500
Stop Loss: Rs 1000
Considering the increment in Call writing in Nifty in strikes as near as 7900 and upwards, it looks like we may see a halt in the up move. Considering relatively high implied volatility it makes sense to keep a hedge in place in case if Nifty reverts back from here
Buy 2600 CE
Sell 2 Lots 2700 CE
Target Profit: Rs 4000
Stop Loss : Rs 1500
TCS is placed near the lower end of the options indicated trading band. The stock has not added any significant longs but the futures open interest trend is not negative. Considering the lack of long evidence it makes sense to trade with prudence hence Call ratio spread could suit well.
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Shubham Agarwal is a head of Quantitative Research, Motilal Oswal Securities