Derivative strategy on State Bank of India by MOSL

Derivative strategy on State Bank of India by Chandan Taparia of Motilal Oswal Securities:
 
Option Strategy
 
Bear Put Spread : State Bank of India ( 23FEB 2017)
 
Buy 240 PE 1 lot
Sell 230 PE 1 lot
 
Rationale:

1. SBIN is consolidating in past few trading sessions with not much incremental participation

2. Highest Call concentration for Feb series is at 260 while move below 250 could see selling pressure accelerating

3. Expecting rise in volatility in coming sessions, low risk hedge strategy Bear Put Spread is recommended.
 
Target Profit: Rs 8,000