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Derivative strategy on Reliance Industries by Motilal Oswal Securities

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

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Last Updated : Jun 13 2017 | 8:39 AM IST

Option Strategy: RELIANCE INDUSTRIES (Call Ladder Spread)

Buy 1340 CE 1 lot

Sell 1400 CE 1 lot

Sell 1420 CE 1 lot

Rationale:

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

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

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

4. 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.