 "Derivative strategy for Tata Motors from Motilal Oswal Securities")
Option Strategy: Tata Motors (Ratio Call Spread)
Buy 580 CE Oct 1 lot
Sell 600 CE Oct 2 lots
Target: 12000 (At 600)
Hedge: Above 615
Stop Loss: 4000
Rationale:
· Tatamotors is in Long- Long Unwinding cycle
· Positive sector outlook along with accumulation in options augurs well for upside momentum
· Unwinding in 560 CE augurs well for upside momentum to continue while congestion at 600 could act as resistance for the stock
· Considering faster theta decay and bullish outlook, Ratio Call Strategy 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
Buy 580 CE Oct 1 lot
Sell 600 CE Oct 2 lots
Target: 12000 (At 600)
Hedge: Above 615
Also Read
Rationale:
· Tatamotors is in Long- Long Unwinding cycle
· Positive sector outlook along with accumulation in options augurs well for upside momentum
· Unwinding in 560 CE augurs well for upside momentum to continue while congestion at 600 could act as resistance for the stock
· Considering faster theta decay and bullish outlook, Ratio Call Strategy 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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