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  • Assignmnet2 Week2Day1

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    Krishna Sai Vootla
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    The document discusses analyzing option chains for two stocks, HAL and VEDANTA, to implement bearish strategies. For both stocks, it is concluded that a bear put spread, where an at-the-money put is bought and an out-of-the-money put is sold, provides a better risk-reward than a bear call spread due to the limited reward compared to the risk of the call spread. The bear put spread is recommended over the bear call spread for each stock.

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    The document discusses analyzing option chains for two stocks, HAL and VEDANTA, to implement bearish strategies. For both stocks, it is concluded that a bear put spread, where an at-the-money put is bought and an out-of-the-money put is sold, provides a better risk-reward than a bear call spread due to the limited reward compared to the risk of the call spread. The bear put spread is recommended over the bear call spread for each stock.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    11 views3 pages

    Assignmnet2 Week2Day1

    Uploaded by

    Krishna Sai Vootla
    The document discusses analyzing option chains for two stocks, HAL and VEDANTA, to implement bearish strategies. For both stocks, it is concluded that a bear put spread, where an at-the-money put is bought and an out-of-the-money put is sold, provides a better risk-reward than a bear call spread due to the limited reward compared to the risk of the call spread. The bear put spread is recommended over the bear call spread for each stock.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    of 3

    LONG Buildup Stocks on 23rd March

    Price Change >= -1%


    OI CHange >= 8%

    HAL
    Option Chain

    Bear Call Spread (Sell ATM, Buy OTM)

    Bear Put Spread (Buy ATM, Sell OTM)


    Conclusions:
    The Bear Call spread is too risky for the limited reward. Even when we move the buy leg closer
    by 20 or 40 points, the risk is still much higher than the reward.
    Bear Put Spread is a better strategy than Bear call spread for manappuram today

    VEDANTA
    Option Chain

    Bear Call Spread (Sell ATM, Buy OTM )


    Bear Put Spread (Buy ATM, Sell OTM)

    Conclusions:
    The Bear Call spread is too risky for the limited reward. Even when we move the buy leg closer
    by 20 or 40 points, the risk is still much higher than the reward.
    Bear Put Spread is a better strategy than Bear call spread for manappuram today

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