Derivative strategy on Petronet by MOSL

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

 

Option Strategy: Petronet (Call Ladder Spread )

 

Buy 390 CE 1 lot

Sell 400 CE 1 lot

Sell 410 CE 1 lot

 

Rationale:

 

1.      It has formed a positive price pattern that is intact and a follow up buying could extend fresh rally

 

2.      Positive sector outlook along with unwinding in 390 CE could lead to option trigger for move towards 400

 

3.      Put accumulation at 380 could act as strong support.

 

4.      Considering faster theta decay , Bull Call Ladder is recommended

 

Target: 12,000        

            

Stop Loss: 2,050         

       

Hedge: Above 415

 

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.