 "Derivative strategy for ITC from Motilal Oswal Securities")
Mentioned below is the derivative strategy for ITC in today's trade:
OPTION STRATEGY:
OPTION STRATEGY:
Buy 350 Jun PE 1 lot
Sell 340 Jun PE 2 Lots
Buy 330 Jun PE 1 lot
Target: Rs 13,500
Stop Loss: Rs 2,500
Sell 340 Jun PE 2 Lots
Buy 330 Jun PE 1 lot
Target: Rs 13,500
Stop Loss: Rs 2,500
Rationale: ITC is consolidating in past few trading sessions. Call built-up at 360 could act as an immediate resistance. Unwinding in 350 PE could augurs well for downward momentum. Considering stable volatility and to benefit from theta decay Put Butterfly 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. 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.
Sacchitanand Uttekar is an Equity Technical Analyst at Motilal Oswal Securities
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