Derivative strategy on Infosys by Motilal Oswal Securities

Derivative strategy on Infosys by Sacchitanand Uttekar, Equity Technical Analyst & PFA at MOSL

Here is derivative strategy on Infosys by Sacchitanand Uttekar, Equity Technical Analyst  & PFA at Motilal Oswal Securities:

Option Strategy:

INFOSYS MODIFIED BULL CAL SPREAD

BUY 960 CE 1 LOT

SELL 1000 CE 1 LOT

SELL 900 PE 1 LOT

Target: Rs 12000               

Stoploss: Rs 4000                 

Hedge: Sell Future below 910

Rationale:

1. INFY witnessed good accumulation in OI and positions were Rolled over to February series
2. Stock is trading near its highest Put congestion indicating support in place
3. Move above 960 could lead to option trigger
4. As we want to participate bullish momentum, Modified 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.

Sacchitanand Uttekar is an Equity Technical Analyst at Motilal Oswal Securities.