INSUBCONTINENT EXCLUSIVE:
By Motilal Oswal SecuritiesOption WritingSTRATEGY 1
Writing against Cash / Fut HoldingSell GAIL 360 CE 31-JANUARY-19 at `2.65
Target Level
0.05
Stop Loss Level 3.95
Gross Monthly Yield 1.30 per cent
ROI 9 per cent
Margin `76,500
Days to Expiry 18
Writing with HedgingLeg 1: Sell
GAIL 360 CE 31-JANUARY-19 at `2.65
Leg 2: Buy GAIL 380 CE 31-JANUARY-19 at `0.80
Target Level 0.05
Stop Loss (Spread) Level 2.75
Gross
Monthly Yield 0.90 per cent
ROI 6.40 per cent
Margin `74,500
Days to Expiry 18
STRATEGY 2
Writing against Cash / Future HoldingSell
TATASTEEL 520 CE 31-JANUARY-19 AT `2.55
Target Level 0.05
Stop Loss Level 3.80
Gross Monthly Yield 0.90 per cent
ROI 6.30 per cent
Margin
`41,500
Days to Expiry 18
Writing with HedgingLeg 1: Sell TATASTEEL 520 CE 31-JAN-19 AT `2.55
Leg 2: Buy TATASTEEL 560 CE 31-JAN-19 AT
`0.60
Target Level 0.05
Stop Loss (Spread) Level 2.85
Gross Monthly Yield 0.70 per cent
ROI 5 per cent
Margin `40,500
Days to Expiry 18
Pair
TradingSTRATEGY 1
Leg 1 BUY HDFC BANK 2 (Two) LOT
31-JANUARY-19 AT `2,120.90
Leg 2 SELL HDFC LTD 1 LOT 31-JANUARY-19
AT `1,996.90
Tenure 7-8
Days
Target Profit 3.40 per cent
Stop Loss 1.65 per cent
Margin `3,60,000
This pair has 98 per cent correlation over last one year
Pair (HDFC Ltd / HDFC Bank) has Trade lot ratio of 0.53 with price ratio of 0.94
It has been moving in a price spread difference of 120 to 180 points from last couple of weeks
Expecting spread to slightly widen towards its 3 months mean with expected spread of 150 to 170 points as per its statistical data on 2SD
band.
Pair TradingSTRATEGY 2
Leg 1 BUY DABUR 2 (Two) LOT
31-JANUARY-19 AT `423.95
Leg 2 SELL HINDUNILVR 1 LOT
31-JANUARY-19 AT
`1,778.90
Tenure 7-8 Days
Target Profit 3.50 per cent
Stop Loss 1.75 per cent
Margin `3,71,000
This pair has 93 per cent correlation over
It has Trade lot ratio of 2 with price ratio of 0.24
As per statistical data it has skewed from its means and set to come towards its mean zones with outperformance nature of Dabur.
