Derivative strategy on Reliance Industries by Motilal Oswal Securities

Derivative strategy on Reliance Industries by Chandan Taparia of Motilal Oswal Securities:

 

Option Strategy:  RELIANCE INDUSTRIES (Call Ladder Spread)

 

Buy 1340 CE 1 lot

Sell 1400 CE 1 lot

Sell 1420 CE 1 lot

 

Rationale:

 

Reliance has respected its multiple support of 1300 and formed a double bottom.

 

Fresh writing at 1340 PE could provide support while unwinding in 1340, 1360, 1380 could attract a bounce.

 

Maximum Call OI is at 1400 strike which could restrict its upside momentum.

 

Thus low risk Call Ladder Spread is recommended.

 

TARGET: Rs 10,000 

                   

STOP LOSS: Rs 4,000

Hedge: Buy Future Above 1,460

 

Disclaimer: Chandan Taparia is a Deivatives and Technical Analyst at Motilal Oswal Securities.