Derivative strategy for Reliance Industries: Motilal Oswal

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

Option Strategy:

Reliance industries:  Bull spread
Expiry: 25Feb2016

BUY Feb 1 Lot 1140 CE, SELL FEB 1 LOT 1180 CE

Rationale:  Fresh long was seen in Reliance in month of January.  Stock has move in Long- Long Unwinding Cycle. Put built-up at 1000 act as important support. On higher end call writing is seen in 1100 CE, that becomes immediate target. With implied volatility trading at low level  BULL 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