TCS Q2 Results Based Strategies Explained

  • Stock Market Analysis

TCS (NS: TCS ) Q2 RESULT BASED STRATEGIES

The IT heavyweight is scheduled to declare its results today [8-10-21] after market hours. This is the reason I thought of doing a post cum video explaining the basis on which I have created the strategy only for the purposes of tracking and till the time of writing this post and creating the video related to it, I have not taken a position. If I do take, I will let you know in the weekend post.

TCS hit a New All-Time High of 3989 and at the time of writing this post, it is around 3950. I already have other FNO positions on so I do not have spare capital to deploy so this approach. 

I have chosen to track the following strategies:

Bull Call Spread:

In creating the spread, I have bought 3960 CE and shorted 4000 CE. The details of the cost, pay-off, and the associated risk as well as the capital needed have been explained in the short and crisp video. 

In the worst case, there is a loss of 4K and in the best case, a gain of 6K. In my view, this is a good risk-reward considering the fact that there could be wild movements in a scrip post its results and TCS has moved 2-3% in the past around such events.

ATM Short Straddle:

In this, I have shorted 3960 CE as well as PE. the details of the cost, pay-off, and the associated risk as well as the capital needed have been explained in the short and crisp video. 

The margin requirement is quite high so even if I create a strategy by EOD, I would not go for this. The Max gain is around 65K and obviously, the loss is unlimited as Options are being shorted. Though one can always keep an SL or exit when the spot reaches a pre-decided level. 

Generally, short strategies are useful when the implied volatility is high prior to the event and the position gains as the VIX cools off to post the event.

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  • Rakesh Jangid @Rakesh Jangid
    Link to video ?
    Like 1
  • Vishal Upadhyay @Vishal Upadhyay
    tcs 4300 on monday
    Like 4
    • Umesh Rindani @Umesh Rindani
      @Vishal Upadhyay If it does, I will be very happy as I hold a position in EQ.
      Like 1
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  • Praveen Kumar Mukriyantavita @Praveen Kumar Mukriyantavita
    where is the video plzzz
    Like 0

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