Derivative strategy on Tata Motors by Motilal Oswal Securities

Derivative strategy on Tata Motors by Chandan Taparia of Motilal Oswal Securities:
 
Option Strategy: Tata Motors (Call Butterfly Spread )
 
Buy 460 CE 1 lot
Sell 480 CE 2 lots
Buy 500 CE 1 lot
 
Rationale:
 
1.       Tata motors has witnessed accumulation in open interest in past few trading session
 
2.       Positive sector outlook  along with fresh built up could boost the momentum
 
3.       Highest call congestion is at 460 Ce, unwinding in same could propel momentum towards 480
 
4.       Thus low risk Call butterfly Spread is recommended
 
Target: Rs 20,000