By Motilal Oswal Securities

Option Writing

STRATEGY 1

Writing against Cash / Fut Holding
Sell NIIT TECH 1150 CE 26-JULY-18 @ 18.05
Target Level : 4.05
Stop Loss Level : 25
Gross Monthly Yield : 2.15 per cent
ROI : 8.70 per cent
Margin : 1,21,000
Days to Expiry : 18

Writing with Hedging
Leg 1 : Sell NIIT TECH 1150 CE 26-JULY-18 @ 18.05
Leg 2 : Buy NIIT TECH 1200 CE 26-JULY-18 @ 9.05
Target Level : 0
Stop Loss (Spread) Level : 14
Gross Monthly Yield : 1.40 per cent
ROI : 6.10 per cent
Margin : 1,11,000
Days to Expiry : 18

STRATEGY 2

Writing against Cash / Future Holding
Sell NTPC 160 CE 26-JULY-18 @ 0.85
Target Level : 0
Stop Loss Level : 1.30
Gross Monthly Yield : 1 per cent
ROI : 4.15 per cent
Margin : 82,500
Days to Expiry : 18

Writing with Hedging

Leg 1 : Sell NTPC 160 CE 26-JULY-18 @ 0.85
Leg 2 : Buy NTPC 170 CE 26-JULY-18 @ 0.25
Target Level : 0
Stop Loss (Spread) Level : 1.00
Gross Monthly Yield : 1.20 per cent
ROI : 2.95 per cent
Margin : 81,500
Days to Expiry : 18

Pair Trading

STRATEGY 1
Leg 1 : BUY HDFC LTD 1 LOT 26-JULY-18 @ 1904
Leg 2 : Sell NIFTY 1 LOT 26-JULY-18 @ 10773.65
Tenure : 6-7 Days
Target Profi t : 2.40 per cent
Stop Loss : 1.25 per cent
Margin : 1,85,000

This pair has 98 per cent correlation over the last one year. Pair has Trade lot ratio of 0.80 with price ratio of 0.18. Spread is trading at 60 per cent band of its 2SD and as per the statistical data, so the mentioned stock can outperform the broader index.

Pair Trading

STRATEGY 2
Leg 1 : Buy AMBUJAECEM 1 LOT 26-JULY-18 @ 208.35
Leg 2 : Sell ACC 1 LOT 26-JULY-18 @ 1372.65
Tenure : 6-7 Days
Target Profi t : 3.10 per cent
Stop Loss : 1.50 per cent
Margin : 1,35,000

This pair has 97 per cent correlation over the last one year.Pair has Trade lot ratio of 1.10 with price ratio of 0.15. As per the statistical data, spread has skewed to its lower band so may move back towards its mean levels.