Buy Ashok Leyland 85 Call, South Indian Bank 22.65 Call: VK Sharma

VK Sharma, Head of Business, Private Client Group at HDFC Securities told CNBC-TV18, "Ashok Leyland is the stock which has moved up after a long gap of time and as usually it happens, people tend to lighten their commitments when the stock starts moving up from being on the short side. Therefore you have not seen positions being built on the long side, positions have been pruned yesterday but overall I am buying 85 Call at a price of 60 paisa with a target of around Rs 2. The market lot is 7,000, so there is no reason to put a stop loss here."

"Because this is end of the settlement, you buy a lower call and sell a higher call on Escorts. Basically you are constructing a bull spread in which you are fixing your cost at Rs 5 and you are also capping your profit at the price of around Rs 15. Buying 560 Call at Rs 10 and selling 580 Call at Rs 5. So cost and profit turns out to be Rs 5 to Rs 15," he said.

"One of the stocks that has done well in the current series in terms of price going up is Sintex Industries which has gone up by 10 percent but the position has not been built. Position was built only yesterday. I think this stock could be setting itself for a further hike. I am buying 117.5 Call here at Rs 1.6, stop loss at Re 1 and a target of around Rs 2.5."

"South Indian Bank is another stock which has done well. So, I am buying that at 22.65 Call, strange calls because of the rights issues that came in but at Rs 1.3 and the stop loss will be at 80 paisa, the target is around Rs 2.5. The market lot is 24,118 shares, it is time we revise these things and make investors take a test, people wanted to get into derivatives rather than making all these news."