Buy BHEL 180 Call, Sell 160 Put: Amit Trivedi

Amit Trivedi, co-founder of Investworks.in told CNBC-TV18, "Bharat Heavy Electricals (BHEL) has moved substantially above Rs 170. So we have a risk reversal strategy over here which is one can buy 180 strike Calls of BHEL and fund that by selling 160 strike Put options. 

"Currently one is getting Rs 0.25 in that strategy, one can wait and when this cash inflow goes to Rs 0.5 enter into that trade. This should become close to around -0.3 to -0.4 which means one will make around Rs 0.8 of profit in that strategy."

"One can also sell straddle of State Bank of India (SBI) 1,800 strike which is Call and Put. One may get Rs 115 in that strategy and since SBI will come out with numbers only in February, there is no result shock that one is expecting from that counter. We think that straddle price should come down to around Rs 90 in the next five-ten days," he said.