How to Trade Infosys before Q3 Results

By | January 8, 2014

Infosys Q3 Results will be declared before  Friday market opening this will result which will be coming out after stock has hit a fresh life high of 3575.

Infosys is famous for Wild swing after the Quarter results as shown in below chart . Except last quater when stock opened gap up of 4% but got sold off immediately,  Past 3 Quarters have been market with Huge gap up and gap downs by more than 10%.  So trading in Infosys is playing with fire 1 day before results day  🙂

Infy Gaps

Most of traders use the option route to trade Infosys so am discussing what option data is revealing 1 days before results.

Option Market Analysis

The implied volatility of ATM options is at  39-42%, which implies that traders expect a sharp swing in Infosys shares on Friday. Option premiums are now so high that the stock will have to move by well more than 7% for straddle buyers to profit. In a straddle position, traders buy both a call and a put option, expecting to profit from a sharp move in either direction but with such high IV’s it does not make a good risk to reward ratio to Buy  straddle and hence traders should avoid the same.

Daily Chart

Infy

Daily Chart of Infosys has formed a triple top pattern and is also trading in a upward rising channel,Range of  3421- 3392 is very crucial for further up move in stock price.Unable to hold it stock can move down to level 3250 -3191.

 

Weekly Chart Time Analysis

Infy Time

Time analysis on Weekly chart is shown, It seems Infy has created its short term top and any close below 3392 stock will correct till 3250 odd levels.

Traders who follow TC level Keep a close eye on 3499 cash level for Infoys. Till 3499 is not crossed stock will remain in bear grip.

Intraday Traders can use the below mentioned levels.

Buy above 3442 Tgt 3461,3495 and 3515 SL 3428

Sell below 3421 Tgt 3407,3390 and 3353 SL 3441

4 thoughts on “How to Trade Infosys before Q3 Results

  1. Bramesh Post author

    Thanks It stands corrected.

    Well Since IV are not high as 60-70 but still high in range of 39-42 and will increase further tomorrow trading session , Also the main task for NR will be to bring down the volatility of stock like he did last time,so i would stay away from options. There are lot other trade opportunities available.

    Rgds,
    Bramesh

  2. Hemanth

    One More Question last time i remember IV’s were near 60-70 i think….Shorting Straddle gave gud money..Do you see that chance now sir..

  3. Hemanth

    Sir in Time analysis statement…It is Mentioned as NIfty instead Of Infy.Please correct

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