Option Strategy on Bank of Baroda by Motilal Oswal Securities

Option Strategy on Bank of Baroda by Chandan Taparia of Motilal Oswal Securities:

Option Strategy:

BANK OF BARODA: BULL CALL SPREAD

Buy 165 CE 1 lot

Sell 170 CE 1 lot

Reward: 15,000                     Risk: 5000

Rationale:
 

1. It has given a reversal on the weekly chart by forming a Hammer candle

2. Holding near to its 50 DEMA and turning from lower band of the rising channel

3. Fresh Put writing at 160 strike could provide the support

4. Call unwinding in 165 and 170 strike propel for a bounce back move

5. Thus low risk strategy Bull Call Spread is recommended

Disclaimer: The analyst may have positions in the stock mentioned above.