F&O strategy: How to trade in Titan ahead of its Q4 results?

Jewellery maker Titan is all set to announce its fourth quarter results today, with the results expected to be announced after market hours. For the fourth quarter, the company is expected to post an 11% jump in revenue to ₹11,000 crore, while the company's net profit is expected to grow by 11% to ₹800 crore.

In FY24, Titan achieved a return of 49%, significantly outperforming the NIFTY50 index, which rose by 28% over the same period.

Technical view

Titan hit a new all-time high on 30 January 2024 and since then the stock has been trading sideways, consolidating between 3,500 and 3,900. In addition, the stock recently closed below its key 50-day moving average and is currently trading between the 50 and 200 DMAs. Traders can keep a close eye on these important price levels as a close above or below these will provide further directional clues.

Options overview

The open interest data for the 30 May expiry shows a significant concentration of calls at the 3700 strike and puts at the 3400 strike. In addition, there was also a fresh accumulation of both calls and puts at the single 3600 strike.

How to plan an options trade?

Given the implied move of ±5.8% from the options data, traders can initiate either a long or short volatility trade, taking into account the price movement. To trade based on volatility, a trader can take a Long or Short Straddle route.

Disclaimer

Derivatives trading must be done only by traders who fully understand the risks associated with them and strictly apply risk mechanisms like stop-losses. The information is only for educational purposes. We do not recommend any particular stock, securities and strategies for trading. The stock names mentioned in this article are purely for showing how to do analysis. Take your own decision before investing.