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Option

Option Strategy before TCS Quarterly results on 11.01Option strategy in TCS ahead of result on 11.01.18 1. Sell 2750 call at 47 and 2650 put at 38 each one lot 2. Buy 2800 call at 31.90 and 2600 put at 23.95 each 2lots Funds requirement Approx 6675 Margin required = 140000 Time of holding: 3 to 5 trading days. Book profit if price fall below 2550 or rise above 2830. Book loss if consolidate in the band of 2650 to 2750 post result. The strategy is based on the assumption that price may have big move after the results but if it does not happen and it remains in the range there would be small loss.
NSE:TCS
by praveen.bhatiya
3
Banknifty June Future is trading at 70 point discount Bank nifty future June expiry trading at a lesser price as compare to may expiry. We can get benefited from this? Bank nifty future 29th June 2017 expiry@22270 and 25th May 2017 expiry@23340 is having an arbitrage value of 70 point or 2800 in money term. Reason 1: This indicates the short term the market demand is more as compare to the long term. Reason 2: Long in banking stock is hedged with the index short. Reason 3: Since few banking heavy weight not declared the result anticipating the higher volatility over hedging happened. Reason 4: FOMC meeting outcome expectation hence over hedging. Option strategy: This action is temporary and will not stay longer. What kind of strategy one can form? a. Buy 22500 call and put of 25th May 2017 expiry and sell 22000 put and 23000 call option of 29 June expiry each one lot. Excellent risk reward. Book profit either at 22000 or 22900 spot level. b. Buy Future June one lot, 22500 put may 25th expiry one lot, sell 23000 call June 29th expiry one lot. Book loss if price fall below 21800 profit above 22900.
NSE:BANKNIFTY
by praveen.bhatiya
9