Derivative strategy for Indiabulls Housing Finance from Motilal Oswal Securities

Here is the derivative strategies on Indiabulls Housing Finance from Sacchitanand Uttekar of Motilal Oswal for trade today:

Option Strategy:

Indiabulls Housing Finance Call Ladder Spread

 
Buy 840 Oct CE 1 lot
Sell 880 Oct CE 1 lot
Sell 880 Oct CE 1 lot
Target: 14000                                    
SL: 2000   
Hedge: Above 890
 
Rationale:

1. Indiabulls Housing Finance is in long –long unwinding cycle

2. Put accumulation at 820 & 800 PE could act as a vital support

3. Unwinding in 840 CE could see upside momentum picking up

4. Further to take benefit of theta decay, Call Ladder Spread is recommended