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Derivative strategy on Tech Mahindra by Motilal Oswal Securities

Derivative strategy on Tech Mahindra by Chandan Taparia, Derivatives & Technical Analyst, Motilal Oswal Securities:

Chandan Taparia  |  New Delhi 

Photo: Shutterstock.com
Photo: Shutterstock.com

on by Chandan Taparia, Derivatives & Technical Analyst, Motilal Oswal Securities:

: BULL CALL SPREAD

View: Positive to range bound

BUY 1 LOT OF 640 CALL
SELL 1 LOT OF 660 CALL
NET PREMIUM PAID: 8.20 POINTS
KEEP SPREAD SL: 4.20 POINTS (RISK OF Rs. 4800/-)
KEEP SPREAD TARGET: 15 POINTS (REWARD OF Rs. 8160/-)

RATIONALE:

1. It has been respecting to its multiple support of 603-605 zones
2. Volume surge, positive price pattern and strong closing
3. Rising call activity suggests momentum
4. Thus, suggesting bull call spread to get the benefit of positive to range bound move

Disclaimer: The analyst may have positions in any or all the stocks mentioned above.

First Published: Tue, April 03 2018. 08:23 IST
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