Do ratio trade in Maruti Suzuki for 1-2 weeks: Trivedi

According to Amit Trivedi, Director of Fin Stream Financial Advisors, investors can do a ratio trade in Maruti Suzuki with one-two week perspective.
 
Trivedi told CNBC-TV18, “Although for the entire February series, I think buying Options is a better strategy given the expected volatility in the second half of the month. However, we think from one-two week perspective investors can go and do a ratio trade in Maruti Suzuki.”
 
“Maruti Suzuki after results has been consolidating between Rs 1,550-1,600 kind of levels. So, investors can buy 1,650 Calls of Maruti at around Rs 24 and sell two 1,700 Calls at around Rs 12. There is zero rupees invested in this trade and in the next three-four days, we think the Spread will open up around Rs 2-3 at which price investors can book profit in this particular trade.”