Buy ITC 320 call; sell two lots of 340 call: Kshatriya

Vishal Kshatriya, senior derivative and technical analyst at Edelweiss told CNBC-TV18, "I have an options strategy on ITC. It is a bullish strategy, so view is bullish. The strategy is bull ratio spread which involves buying 320 Call and simultaneously selling two lots of 340 Calls. The net cost for developing this strategy is almost nil, it is just 20 paisa, so we will be making a profit of Rs 10 if stock rallies till Rs 340.”

“On the contrary if stock falls from here then we will not have any losses as we are simultaneously buying and selling Options together which will make sure that we will be hedged on the downside. However, if stock sees a very strong upmove above Rs 350 then only we will see loss,” he added.