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Derivative strategy on Tata Steel by Motilal Oswal

Derivative strategy on Tata Steel by Chandan Taparia of Motilal Oswal Securities

Chandan Taparia  |  Mumbai 

Tata Steel
Derivative strategy on Tata Steel by Chandan Taparia of Motilal Oswal Securities:

Option Strategy:


Bull Call ladder Spread

Buy 510 CE 1 lot
Sell 520 CE 1 lot
Sell 530 CE 1 lot

Target: 18,000                             
Stoploss: 1600  
Hedge: Buy future above Rs 535


1.Tatasteel is in long-long unwinding cycle
2. Unwinding in 500 CE and incremental addition in 490 & 500 PE suggest upward shift in band
3. Immediate highest call congestion is placed at 520
4. In order to benefit from faster time decay, Bull Call Ladder is recommended

Disclaimer: Motilal Oswal Securities ( MOSL ) is regulated by the Securities and Exchange Board of India ("SEBI") and is licensed to carry on the business of broking, depository services and related activities. MOSL is in the process of getting registered under SEBI - Research Analyst Regulations. MOSL, the spokesperson or his relatives, do not have financial interest in the securities mentioned above. The spokesperson has not served as a director, employee or officer at the subject company in the last 12 months. MOSL or its associate might be involved in market making for the subject company or have potential conflict of interest.

Chandan Taparia is a Deivatives and Technical Analyst at Motilal Oswal Securities.