Derivative strategy on Hindustan Unilever by Motilal Oswal Securities

Derivative strategy on Hindustan Unilever by Chandan Taparia of MOSL

Derivative strategy on Hindustan Unilever by Chandan Taparia, Derivative and Technical Analyst & PFA at MOSL:

  

Option Strategy:

Hindustan Unilever Bull Call Spread

Buy 870 CE 1 lot

Sell 890 CE  1 lot

Target: 9000 

Stoploss : 3000

Rationale:

1) Hindunilvr saw incremental built-up in last few trading session

2) Put writing at 860 indicates support in place while call unwinding at 860 could propel momentum towards 900

3) As we are participating bullish momentum, Bull Call 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.

Chandan Taparia is Derivative and Technical Analyst at Motilal Oswal Securities.