Derivative strategies on HPCL, Tata Motors from Motilal Oswal Securities
Mentioned below is the derivative strategy on HPCL and Tata Motors
HINDUSTAN PETROLEUM
Option Strategy: HINDPETRO (Long Call)
BUY MAR 1 LOT 760 CE
Target: Rs 20
Stop Loss: 0
Rationale: Stock have been in Long- Long Unwinding cycle. ü Put built-up at 760-740 should act an important support. Unwinding in 760 CE augurs well for momentum to continue upwards. As we are trading momentum, Long call is recommended.
TATA MOTORS
Option Strategy: TATAMOTORS (Bear Put Spread)
BUY MAR 1 LOT 360 PE
SELL MAR 1 LOT 350 PE
Target: Rs 12,000
Stop Loss: Rs 3,000
Rationale: Stock has seen unwinding in last few trading sessions. Huge open interest built-up in 360,370 CE act as a hurdle. Unwinding in 360 PE augurs well for move towards 350. Considering faster pace of time decay and short momentum prevailing, Bear Put Spread 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.Motilal Oswal Securities Limited is registered under SEBI (Research Analysts) Regulation 2014 SEBI Registration No :-INH000000412. MOSL or its associate might be involved in market making for the subject company or have potential conflict of interest.
Shubham Agarwal is a head of Quantitative Research, Motilal Oswal Securities
Option Strategy: HINDPETRO (Long Call)
BUY MAR 1 LOT 760 CE
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Target: Rs 20
Stop Loss: 0
Rationale: Stock have been in Long- Long Unwinding cycle. ü Put built-up at 760-740 should act an important support. Unwinding in 760 CE augurs well for momentum to continue upwards. As we are trading momentum, Long call is recommended.
TATA MOTORS
Option Strategy: TATAMOTORS (Bear Put Spread)
BUY MAR 1 LOT 360 PE
SELL MAR 1 LOT 350 PE
Target: Rs 12,000
Stop Loss: Rs 3,000
Rationale: Stock has seen unwinding in last few trading sessions. Huge open interest built-up in 360,370 CE act as a hurdle. Unwinding in 360 PE augurs well for move towards 350. Considering faster pace of time decay and short momentum prevailing, Bear Put Spread 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.Motilal Oswal Securities Limited is registered under SEBI (Research Analysts) Regulation 2014 SEBI Registration No :-INH000000412. MOSL or its associate might be involved in market making for the subject company or have potential conflict of interest.
Shubham Agarwal is a head of Quantitative Research, Motilal Oswal Securities