Derivative strategy on Cairn India from Motilal Oswal Securities

Here is Cairn India derivative strategy by Sacchitanand Uttekar, Equity Technical Analyst & PFA at Motilal Oswal Securities

Here is Cairn India derivative strategy by Sacchitanand Uttekar, Equity Technical Analyst  & PFA at Motilal Oswal Securities:
 
Option Strategy:
 
CAIRN:  Call Ladder Spread

 
Buy 275 CE 1 lot
 
Sell 280 CE 1 lot
 
Sell 285 CE 1 lot
 
Target: 12,000   
 
SL: 3,000      
         
Hedge: Buy future above 287.5
 
Rationale:
 
1.      Cairn is in Long- Long Unwinding Cycle
 
2.      Positive sector outlook along with unwinding in ATM CE could see stock inching higher towards 280.
 
3.       Since we are playing momentum, Call Ladder 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