Derivative strategy for ICICI Bank: Motilal Oswal

Here is the derivative strategy on the ICICI Bank from Motilal Oswal

Option Strategy:

ICICI BANK: Ratio Call Spread
 

BUY 1 LOT JAN 240 CE, SELL 2 LOTS JAN 250 CE

TARGET: Rs 7,500

STOP LOSS: Rs 850

Rationale: Short covering in last few sessions is expected to continue in the coming week Highest Option Congestion in Call indicates headroom for this expiry up to 250. Considering high implied volatility and rising speed of time decay, Call Ratio 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, 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.

Shubham Agarwal is a head of Quantitative Research, Motilal Oswal Securities