INSUBCONTINENT EXCLUSIVE:
By Motilal OswalOption WritingSTRATEGY 1Writing against Cash / Fut HoldingSell INDUSIND BANK 1680 CE 31-JAN-19 @ 12.45
Target Level
0.45
Stop Loss Level 18
Gross Monthly Yield 0.95%
ROI 5.75%
Margin 62,500
Days to Expiry 25
Writing with HedgingLeg 1: Sell INDUSIND BANK
1680 CE
31-JAN-19 @ 12.45
Leg 2: Buy INDUSIND BANK 1740 CE
31-JAN-19 @ 6.00
Target Level 0.05
Stop Loss (Spread) Level 9.95
Gross Monthly
Yield 0.50%
ROI 3.20%
Margin 60,000
Days to Expiry 25
STRATEGY 2Writing against Fut HoldingSell HCLTECH 1000 CE 31-JAN-19 @ 10.25
Target
Level 0.45
Stop Loss Level 15
Gross Monthly Yield 1.25%
ROI 7%
Margin 93,500
Days to Expiry 25
Writing with HedgingLeg 1 Sell HCLTECH 1000
CE 31-JAN-19 @ 10.25
Leg 2 Buy HCLTECH 1050 CE 31-JAN-19 @ 3.00
Target Level 0.30
Stop Loss (Spread) Level 10.50
Gross Monthly Yield
0.90%
ROI 5.40%
Margin 89,000
Pair TradingSTRATEGY 1Leg 1 BUY HDFC BANK 2 (Two) LOT31-JANUARY-19 @ 2131.80
Leg 2 SELL HDFC LTD 1
LOT
31-JANUARY-19 @ 1980.70
Tenure 7-8 Days
Target Profi't 3.50%
Stop Loss 1.70%
Margin 3,57,000
This pair has 98% correlation over last one
Pair (HDFC Ltd / HDFC Bank) has Trade lot ratio of 0.54 with price ratio of 0.93
It has been moving in a price spread difference of 120 to 330 points from last couple of series and latest spread is in between 120 to 180
Expecting spread to slightly widen towards its 3 months mean as per its statistical data on 2SD band.
Pair TradingSTRATEGY 2Leg 1 BUY ACC 1
LOT 31-JAN-19 @ 1474.70
Leg 2 SELL AMBUJACEM 1 LOT
31-JAN-19 @ 217
Tenure 7-8 Days
Target Profi't 3.40%
Stop Loss 1.65%
Margin 1,96,000
This
pair has 95% correlation over last one year
It has Trade lot ratio of 0.90 with price ratio of 6.80
As per statistical data it is turning from its lower band of 2 SD (95% probability) and has potential to head towards its mean after spread
consolidation of last couple of weeks.
