Trading Strategy for 21 May 2013 , Tuesday

Buy Dish TV Call Option Strike Price 70 around 1.75 - 2 for the target of 4 - 4.5 by Thursday

Buy WIPRO Call Option Strike 350 around 6-7 for target of 10 - 12 by Friday

Buy Canara Bank Put Option Strike Price 430 around 6-7 for target of 17-18 by next week

Short IRB Infra for Target of 105

Short Term Traders should Short IRB Infra (cmp 115) for the target of 105 in coming week.

• The budget has not given any clear roadmap for the infrascturcture which spells negative for the stocks like IRB
• Other peer group stocks like RelInfra has falled much higher than IRB which means IRB will hit lower targets before setteling down
• There has been a persistent problem with their toll booths across Maharastra state, the toll collection has been regularly vandalised which pegs downs its revenue collection.
• IRB is more of a trading stock now , as deliverly volumes have been very low between 20-25% in last one week.

Small time traders should buy the PUT option of IRB for March with strike price of 110 between 4 to 4.5 and sell around 7-8 in coming days.

Buy Hexaware in Hedge Options Manner before

Traders and short term profit makers should buy the Hedging Option of Hexware on Monday 11 Feb 2013 before the announcement of its Dec Qtr results.

Buy 85 Call @ cmp 3.70 and 80 Put @ 3.30

Hence total cost of Investment = 7 * 2000 ( Lot Size of Hexware ) = 14,000

In the even of very good or bad result the stock will move upward or downward of more than or around 5% , hence the chances of gain are explained below.

Good Result stock moving up 5% = 86 Cost of Call likely 7 and cost of Put likely 2, Hence total selling cost = 9*2000 = 18,000, Therefore a gain of 4000/-.

Viceversa in case of a bad result and stock moving down of around 5%.

The above calculation has been taken on very conservative basis the are likely to be much higher.