Derivative strategy on Voltas by Sacchitanand Uttekar of MOSL

Derivative strategy on Voltas by Sacchitanand Uttekar, Equity Technical Analyst & PFA at MOSL:

Option Strategy:

Ratio Call Spread: Voltas

Buy 350 CE 1 lot

Sell 370 CE 2 lots

Target: Rs 10000

SL: Rs 3000

Rationale:

Voltas had witnessed strong accumulation in Open interest in Futures in past few trading sessions

Put built-up at 330 act as a strong support, while call unwinding at 340 could lead to option triggers

Considering few days to expiry and to benefit from theta decay, Ratio Call Spread is recommended

Disclaimer: Motilal Oswal Securities ( MOSL ) is regulated by the Securities and Exchange Board of India ("SEBI") and is licensed to carry on the business of broking, depository services and related activities. MOSL is in the process of getting registered under SEBI - Research Analyst Regulations. MOSL, the spokesperson or his relatives, do not have financial interest in the securities mentioned above. The spokesperson has not served as a director, employee or officer at the subject company in the last 12 months. MOSL or its associate might be involved in market making for the subject company or have potential conflict of interest.

Sacchitanand Uttekar is an Equity Technical Analyst at Motilal Oswal Securities.